Paxos, a blockchain infrastructure company for digital assets, announced that its subsidiary, Paxos Securities Settlement Company (PSSC), received clearing agency registration from the U.S. Securities and Exchange Commission under Section 17A of the Securities Exchange Act of 1934.
With this approval, PSSC became the first blockchain-native company authorized by the SEC to operate as a registered clearing agency and central securities depository in the United States. The company will now be able to officially provide clearing and settlement services for financial markets.
The registration continues Paxos’ long-term work on blockchain-based market infrastructure. Back in February 2020, the company started processing U.S. equity settlements under SEC no-action relief. Several large global financial institutions participated in the program. Paxos used the project to demonstrate that blockchain technology could support same-day settlement while reducing operational costs and simplifying post-trade processes.
Paxos is also known as the issuer behind several regulated stablecoins and digital asset solutions.
Image: Magnific
