Paxos says it has been granted registration as a clearing agency by the Securities and Exchange Commission. Paxos Securities Settlement Company is said to be the only blockchain-native firm to have gained approval as a central securities depository.
Charles Cascarilla, CEO and co-Founder of Paxos, said the approval follows seven years of work with the SEC, including a no-action letter in 2019 and a settlement pilot to display its capabilities. Cascarilla said they can now offer the most complete infrastructure for the market using blockchain technology.
Following the no-action letter in February 2020, Paxos operated the clearing and settling of U.S. equities on a daily basis, demonstrating that it could deliver same-day settlement, while reducing costs and improving operational efficiency.
Paxos is also regulated by the OCC in the US, FIN-FSA in Europe, and the MAS in Singapore.
Paxos is used by many established traditional finance and Fintech firms like PayPal, Interactive Brokers, Mastercard, and Mercado Libre. Paxos also offers infrastructure for stablecoin issuance and management.