Paxos Congratulates the Securities and Exchange Commission on its Proposal to Shorten Settlement Cycles
NEW YORK, Feb. 16, 2022 /PRNewswire/ — Paxos, the leading regulated blockchain infrastructure platform, issued the following statement in response to the US Securities and Exchange Commission’s (SEC) recent announcement:
“Paxos congratulates the SEC on releasing its proposed rule to shorten the standard settlement cycle from two business days after trade date (“T+2”) to one business day after the trade date (“T+1”), and its request for comment regarding the achievement of settlement by the end of trade date (“T+0”). We applaud Chair Gensler’s focus on improving efficiencies and reducing risk in equity settlement cycles. Chair Gensler’s efforts can improve not only the efficiency and effectiveness of US securities markets but can also support increased competition and global competitiveness.
Last year, after the chaotic market events of January, Chair Gensler testified that time equals risk. We agree. Even before Chair Gensler’s comments, Paxos sought and received, on October 28, 2019, no-action relief to conduct a feasibility study of the Paxos Settlement Service. With our participant partners Bank of America, Credit Suisse, Instinet, and Societe Generale, we demonstrated the viability of such accelerated settlements. Prior to the conclusion of (and with the learnings from) that two-year study, we filed an application with the SEC for a full equities clearing agency registration on October 18, 2021. We hope that the Commission will quickly file notice in the Federal Register seeking public comments regarding our submission. Market participants deserve safer and faster settlements and the public deserves reduced concentration risk in public markets.
We look forward to working with the Commission and answering all issues raised in the public feedback to our application.”
About Paxos
Paxos is the leading regulated blockchain infrastructure platform. Its products are the foundation for a new, open financial system that can operate faster and more efficiently. Today, trillions of dollars are locked in inefficient, outdated financial plumbing that is inaccessible to millions of people. Paxos is replatforming the financial system to enable assets to instantaneously move anywhere in the world, at any time, in a trustworthy way.
Paxos uses technology to tokenize, custody, trade and settle assets. It builds enterprise blockchain solutions for institutions like PayPal, Interactive Brokers, Meta, Mastercard, MercadoLibre, Bank of America, Credit Suisse, Societe Generale and Revolut. Paxos is a top-funded fintech company with more than $540 million raised from leading investors including Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital and PayPal Ventures. With offices in New York, London and Singapore, Paxos takes a global approach to modernizing the financial system.
Media Contact:
Rebecca McClain
bmcclain@paxos.com
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SOURCE Paxos
