Paxos Secures SEC Approval for Blockchain-Based Clearing of U.S. Stocks
- Paxos Securities Settlement Company, LLC (PSSC) is now fully registered by the U.S. SEC to provide clearing and settlement services.
- This designation makes PSSC the first blockchain firm authorized as a central securities depository (CSD) for traditional equities in the U.S.
- The approval allows Paxos to clear and settle digital asset trades involving traditional equities, enhancing institutional tokenization of real-world assets (RWAs).
- With this status, PSSC can settle eligible securities nearly instantly, bypassing traditional settlement windows and freeing up capital for institutions.
- Paxos had previously received no-action relief from the SEC in 2019, enabling it to pilot live settlements with major financial institutions.
The SEC’s approval is a significant milestone for Paxos, facilitating faster transaction settlements through blockchain technology while aligning with existing financial frameworks like DTCC.
Paxos’ new registration enables same-day or near-instant settlements for eligible securities, enhancing efficiency in capital markets compared to traditional T+1 cycles.(Source)
