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A blockchain startup now enables custodians to bypass clearinghouses and settle trades directly

by Celia Wan

July 24, 2019, 6:50PM EDT  ·  2 min read

Quick Take

  • OTCXN, a blockchain infrastructure startup, is testing a new technology that allows custodians to settle trades directly on their clients’ behalf
  • The company tokenizes escorted assets at different custodians so that they can be easily traded and settled on OTCXN’s platform, making large trades between institutions more efficient 

by Celia Wan

July 24, 2019, 6:50PM EDT  ·  2 min read

Settling large trades between two different custodians can be a headache, and a blockchain infrastructure startup wants to streamline the process by tokenizing assets under custody on its blockchain. 

San Francisco-based OTCXN is testing a new service that will power cross-custodian settlements, allowing institutional traders to hold assets at their counterparties’ custodians even when they do not have accounts there.