Credit Suisse and broker Instinet said on Tuesday they had settled privately-negotiated stocks deals on a blockchain for the first time, speeding up the completion of share trades to just a few hours, compared with the current system of two days.

The deals bypassed the clearing infrastructure of the Depository Trust and Clearing Corporation, which clears and settles all US equities transactions, and were handled by Paxos Trust Company — a specialist in cryptocurrency technology and custody services.

The standard two-day process for confirming and completing equities trades is a key part of the US stock market’s plumbing and rarely suffers slip-ups, but brokers and market makers criticised its role in January's meme stock trading frenzy. If it gains wider adoption and regulatory backing, this model could provide an alternative way forward.