Paxos announces that its subsidiary, Paxos Securities Settlement Company (PSSC), has been registered as a clearing agency by the US Securities and Exchange Commission.
According to the company, the approval allows PSSC to operate as a central securities depository and clearing agency for securities settlement. The registration replaces a framework under which Paxos had been operating since receiving SEC no-action relief for a settlement pilot in 2020.
The company describes PSSC as the only blockchain-native firm registered by the SEC to provide these services.
Seven years
Commenting on the approval, Paxos CEO and co-founder Charles Cascarilla said the registration follows “seven years of work with the SEC”, beginning with a no-action letter received in 2019.
The approval adds clearing and settlement capabilities to Paxos’ blockchain-based market infrastructure offering, according to the company.
