The second largest bank in the United States is now using blockchain technology to settle stocks.

Bank of America joined the Paxos Settlement Service, a platform that can liquidate stocks on the same day using blockchain technology, according to a Bloomberg report on Monday. Kevin McCarthy, Head of Finance and Clearing, said the bank “has completed internal transactions in the past two months” and will provide services to Bank of America clients once it is approved as a clearing center.

It is reported that this measure will create a “more flexible and faster” equity settlement system compared to the Trust & Clearing Corporation or DTCC, where Bank of America is directly involved. A DTCC settlement has a duration of roughly 2 days, while Paxos can calculate some stock trades in a few minutes.

“We can limit the billing cycle to T + 0,” McCarthy said. Then we can release the collateral that we need to spend overnight. […] ROA would improve in this business, which was a problem. ”

Paxos officially launched a stock trading settlement service in 2019 after receiving assistance from the U.S. Securities and Exchange Commission (SEC) Credit Suisse, a Zurich-based financial institution, and Instinet, the trading arm of Nomura Holdings, participated in a pilot venture and liquidated shares listed on the U.S. Stock Exchange one day. .

In April, operator Stablecoin announced that it had applied for a licensing agreement with the SEC. Paxos also recently completed a $ 300 million financing round, raising the company’s value to $ 2.4 billion.