Paxos, which operates a cryptocurrency exchange and several stablecoins, obtained the nod of the US Securities and Exchange Commission (SEC) to run a pilot project that will leverage blockchain for the stock market, according to a statement released last week.
Settling Stocks with Blockchain
Last week, Paxos obtained the no-action relief letter from the SEC. It confirms that the regulator doesn’t mind the startup’s blockchain trial.
Paxos intends to build a blockchain-based infrastructure to settle and clear stock trades more rapidly and cheaper. The pilot project will operate with stocks like AT&T, General Motors, and a few other company shares.
While there is no guarantee that the project will succeed, blockchain could transform the US stock market by cutting costs for both banks and investors. This would be the next major…