Revolutionizing Settlement: The Paxos Blockchain Approach

This chapter examines the Paxos settlement service, which leverages a private permissioned blockchain for real-time stock trading. It discusses the implications of a no-action letter from the SEC on tokenized equities and how this innovative solution could enhance transparency and efficiency in trading. The chapter also explores the transition toward blockchain technology in asset management, highlighting potential applications and challenges in various sectors.

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Episode notes

In this episode of Unchained, Charles Cascarilla, CEO and cofounder of Paxos, explains how the 2008 financial crisis led him to crypto, what financial plumbing has to do with GameStop, and how Paxos is leveraging blockchain technology to change financial services. In this episode Charles discusses:

his work experience prior to Paxos and how the financial crisis in 2008 opened his eyes to Bitcoin and blockchain (01:07)
what it was like to work in Bitcoin during the early days compared to now (4:02a)
why Paxos decided to focus on building solutions for institutions rather than targeting the retail market like Coinbase (11:38)
the relationship between Paxos and PayPal + why PayPal customers can’t send crypto directly to their wallets or crypto addresses yet (19:37)
how Microstrategy and Tesla are bringing Bitcoin mainstream (25:31)
what really happened with GameStop and Robinhood and why financial plumbing matters (30:34)
how the Paxos Settlement Service is bringing greater transparency to financial markets by using blockchain technology (39:02)
what other assets he thinks will be tokenized (50:32)
stablecoin regulation and why this might be as good as it gets for Tether (58:36)
why Paxos chose to pursue a New York State trust company charter instead of a BitLicense (1:06:15)
what changes he would make to crypto regulation for 2021 and beyond (1:09:28)
what’s next for Paxos (1:15:12)