Being the second-largest American bank, the Bank of America has incorporated explicit use of blockchain technology for its services. They have made a pact with one of the top regulated blockchain infrastructure platforms, the Paxos.
Bank of America’s operations through Blockchain
The news came out officially only on Monday through the media shared by Bloomberg. According to it, the Bank of America has actually been using blockchain technology for a period of months. Yet the news came to the limelight just yesterday. It has merged with Paxos, which provides the necessary blockchain technology. This blockchain will be based on the Ethereum platform completely. Bank of America uses this blockchain solution to date only for its internal settlements and transactions. Furthermore, most of these transactions are based on stock trade settlements.
The Managing Director and head of ‘The Bank of America’, John Kevin McCarthy stated they will be extending their services through the blockchain technology to their clients too, once approved. A major exploit of Paxos-enabled settlement services is that the settlement could be done easily within a few hours. This is completely contradictory to the time period of 2 days for the settlements before.
Paxos CEO and co-founder Chad Cascarilla state the incorporation of blockchain technology will affect the Depository Trust & Clearing Corp.’s (DTCC) profusely. This is because of the fact that those trades done before 11 am alone will be settled for the day, whereas the remaining 75% will be carried on. Their blockchain technology is all set to break DTCC through its intense settlements within a matter of hours. This will also enable the complete settlement of the stocks on the same day effectively.
The Future of Banking Systems
Many financial firms are now adopting blockchain technology and the present rate at which the banks are pouring in to adopt is off charts. This is all due to the growth of efficient, trustable, and effective blockchains and the fruits they bear. Moreover, transactions could be made instantaneously, at flexible rates, and at greater speeds. The transactions are made faster and at nominal prices too. In addition, even border transactions are being made easily through blockchain solutions like RippleNet ODL, which several banks have adopted.
All these reeks all the financial firms to indulge themselves into adopting a secure and prominent blockchain.
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