Paxos Gains SEC Approval for Clearing Agency Operations
- Paxos Securities Settlement Company has been granted SEC registration as a clearing agency under Section 17A of the Securities Exchange Act.
- This approval allows Paxos to operate as a central securities depository in the United States, being the only blockchain-native firm with such registration.
- The SEC’s temporary registration follows a seven-year regulatory process, including a No-Action Letter in 2019 and a pilot program since February 2020.
- In partnership with State Street, Paxos achieved same-day settlement times for stock trading in a blockchain-based pilot in 2022.
The SEC’s approval marks a significant milestone for Paxos, allowing it to provide comprehensive clearing and settlement services while adhering to regulatory requirements. This development reflects growing acceptance of blockchain technology within traditional financial infrastructure.
Paxos’ registration as the sole blockchain-native clearing agency highlights its leadership in integrating blockchain solutions into securities settlement processes. The firm’s ongoing initiatives underscore its commitment to advancing financial technology innovation (Source).
