TLDR Tech / Crypto
Paxos Wins SEC Approval to Clear US Stocks on Blockchain
Paxos Securities Settlement Company (PSSC) received full SEC registration as a central securities depository (CSD), becoming the first blockchain firm authorized to clear and settle US equities on-chain alongside legacy institutions like the DTCC. PSSC can now settle eligible securities same-day or near-instantaneously, compared to the T+1 standard adopted in 2024, freeing locked capital for institutional participants during settlement windows. The CSD status clears the path for Paxos' institutional RWA tokenization strategy, which already powers white-label settlement infrastructure for PayPal and Mastercard. The registration follows seven years of SEC engagement, beginning with no-action relief in 2019 and a live pilot in February 2020 with Bank of America, Credit Suisse, and Societe Generale.
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