The US Securities and Exchange Commission has approved Paxos Securities Settlement Company, LLC as a registered clearing agency, making it the first blockchain-native firm to earn that designation.
The approval, granted on May 27-28, elevates PSSC from a pilot program to a formally recognized clearing entity authorized to provide clearing and settlement services as a central securities depository.
From pilot to permanent
Paxos has been working toward this moment since 2019, when it first received a no-action relief letter from the SEC. The company launched its pilot service in February 2020, executing daily settlements of US equities with some of the biggest names in finance.
Bank of America, Credit Suisse, and Societe Generale all participated in the pilot phase.
