Paxos commends the Securities and Exchange Commission for its proposal to shorten settlement cycles
NEW YORK, February 16, 2022 /PRNewswire/ — Paxosthe leading regulated blockchain infrastructure platform, issued the following statement in response to the recent announcement by the United States Securities and Exchange Commission (SEC):
“Paxos commends the SEC for issuing its proposed rule to shorten the standard settlement cycle from two business days after trade date (“T+2”) to one business day after trade date (“T+ 1″), and his request for comment regarding achieving settlement before the trade close date (“T+0”). We welcome Chairman Gensler’s focus on improving efficiency and reducing risk in equity settlement cycles Chairman Gensler’s efforts can not only improve the efficiency and effectiveness of US securities markets, but can also support increased competition and global competitiveness.
Last year, after the chaotic stock market events of January, Chairman Gensler testified that time is synonymous with risk. We agree. Even before President Gensler’s comments, Paxos requested and received, on October 28, 2019, exempt without action to conduct a feasibility study of the Paxos Settlement Service. With our participating partners Bank of America, Credit Suisse, Instinet and Société Générale, we have demonstrated the viability of such accelerated settlements. Prior to the conclusion (and with lessons learned) of this two-year study, we filed with the SEC for full registration with a stock clearing agency on October 18, 2021. We hope that the Commission will promptly file a notice in the Federal Register seeking public comment 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 responding to any questions raised in public comments on our application.”
Paxos is the leading regulated blockchain infrastructure platform. Its products are the foundation of a new open financial system that can work faster and more efficiently. Today, billions of dollars are locked away in inefficient and outdated financial plumbing, inaccessible to millions of people. Paxos is reforming the financial system to allow assets to move instantly anywhere in the world, anytime, reliably.
Paxos uses technology to tokenize, hold, exchange and settle assets. He builds enterprise blockchain solutions for institutions such as PayPal, Interactive Brokers, Meta, Mastercard, MercadoLibre, Bank of America, Credit Suisse, Société Générale and Revolut. Paxos is a top-funded fintech company with over $540 million raised from leading investors including Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital and PayPal Ventures. With offices at new York, London and SingaporePaxos takes a holistic approach to modernizing the financial system.