Paxos Secures SEC Registration as Clearing Agency - Decrypt

In brief

Paxos Securities Settlement Company has received SEC registration as a clearing agency.

The registration allows Paxos to operate as a central securities depository and provide clearing and settlement services, while meeting ongoing regulatory requirements.

The approval follows seven years of regulatory engagement, including a 2019 No-Action Letter and a pilot program operating since February 2020.

Paxos Securities Settlement Company, a subsidiary of blockchain infrastructure firm Paxos, has received SEC registration as a clearing agency under Section 17A of the Securities Exchange Act.The registration makes Paxos the “only blockchain-native firm” approved by the SEC to operate as a central securities depository in the United States, the company said in a press release.