Paxos Becomes First Blockchain-Native Clearing Agency Approved by SEC
- Paxos Securities Settlement Company is the first blockchain-native firm registered as a clearing agency by the US SEC.
- The SEC’s approval is seen as a significant advancement in integrating blockchain technology with traditional capital markets.
- Paxos’ blockchain-based settlement service for US equities began piloting in February 2020, following a no-action letter from the SEC in October 2019.
- The company aims to enhance operational efficiency and reduce costs through same-day settlement capabilities.
- Paxos has faced regulatory challenges, including a $48.5 million settlement with NYDFS over compliance issues related to Binance USD (BUSD).
The registration of Paxos as a clearing agency marks an important milestone for both stablecoins and the broader cryptocurrency infrastructure, facilitating smoother operations for banks and brokerages entering the crypto space.
With this new status, Paxos reinforces its role in the financial market infrastructure, highlighting its commitment to regulated blockchain solutions after years of collaboration with the SEC.(Source)
