Bank of America has Adopted Blockchain Technology for Stock Brokering Aid

Bank of America is one of the biggest banks in the world. At present, the financial institute boasts about $1.08 trillion in AUM, with clients present in more than 30 countries. The beacon institute also referred to as BNY Mellon, became the talk of the crypto town when it announced an affiliation with blockchain service provider Paxos Settlement Service. The association with Paxos Settlement Service would allow the bank to settle the stock transactions on the same day.

This is a new step forward in blockchain technology adoption. It should be noted that it usually takes more than 24 hours for the international transfer of shares. In many cases, when the numbers of shares are in bulk, the transit could last for days. However, with the use of blockchain consensus technology, the value could be settled within 24 hours, and traders would be able to take advantage of conventional tools like stop loss more efficiently.

Swiss banks are known in the world for their privacy and accuracy. The Swiss banking giant Credit Suisse has already set a precedent for the rest of the monetary organizations by signing up for Paxos Settlement Services. The Paxos network operates a personalized and dedicated version of the Ethereum blockchain network.

The second bank to take advantage of this technology is Nomura Holdings, which is based in Japan. At present, only these three banks can provide their customers with lightning-fast stock transferring networks. This can prove to be a game-changer in the stockbroking industry. Bulk investors could have more flexibility to make their decisions, and they would also be able to manage their risks many times more efficiently.

Blockchain Technology will Improve Stock Trading Market

Chad Cascarilla, CEO at Paxos, remarked that the new technology would call out and replace the Depository Trust and Clearing Corp. (DTCC). This system is the closest technology that enables traders to have a same-day settlement. However, this network only works if transactions are punched in before 11:00 a.m., and it takes more or less two days at best.

Cascarilla also added that adoptions by names like BNY Mellon would make way for mainstream and widespread adoption of the technology. The Paxos network was approved by SEC in 2019, but it is getting traction in the present crypto boom environment. Kevin McCarthy, head of finance and clearing at BNY, told media that with the help of this technology, the service provider could determine the settlement cycle as minute as T+0, free overnight collateral posting, and better ROI for assets.

Leave a Reply

Your email address will not be published.

Related

Crypto.com Removes Cryptocurrencies from Earn Program

The current turmoil in the cryptocurrency market has forced a number of companies in the space to shift their strategy and come up with new approaches that can help them pull through the downtrend. Crypto.com is also doing the same as it announced that they are making changes to their rewards program called Crypto Earn. […]

A Particular Even May Help Recover Shiba Inu’s Price

The trading price of Shiba Inu (SHIB) experienced a gigantic plunge that was triggered due to the recent bloodbath of cryptocurrency. SHIB Bleeds Badly As the cryptocurrency industry suffered a bloodbath, the trading price of Shiba Inu experienced an even worse situation. SHIB’s trading price reportedly suffered double-digit losses. Despite suffering huge losses, the analysts […]

Price of Bitcoin Suffered another Dip Due to Cypherpunk Holdings

The price of Bitcoin (BTC) ended up experiencing a dip and it came down to $20,200. Bitcoin’s price dipped due to a strong selling that was nothing less than a bloodbath. A great sell-off activity was recorded for Bitcoin that was triggered by multiple institutions. Even the investment firms ended up selling Bitcoin on a […]

Stocks Slip and Yields Ease in Light of Powell’s Comments

On Wednesday, global indexes saw stocks edge lower for the most part, while Treasury yields eased, as investors were taking in the comments of Jerome Powell, the Chairman of the US Federal Reserve. He said that while there was certainly a risk of the economy slowing down too much because of aggressive hikes in interest […]

Asia-Pacific Stocks Gain with Investors Weighing Economic Concerns

On Tuesday, shares in the Asia-Pacific region climbed higher, as investors were weighing the economic concerns. Most indexes record gains The Hang Seng index in Hong Kong had been trading at a loss but rose 0.7% in the last hour of trading. There was also a 0.73% gain in the Hang Seng Tech index. On […]