Overview
- Paxos Securities Settlement Company, which received SEC registration on May 27–28, 2026, can now operate as a clearing agency and central securities depository to clear and settle eligible U.S. securities.
- The registration is temporary and binds PSSC to Section 17A rules on capital, risk management, and reporting, meaning the SEC will monitor compliance before the status becomes permanent.
- Paxos moved from a 2019 no‑action pilot to registration after running a live settlement pilot from February 2020 with banks such as Bank of America, Credit Suisse and Société Générale that tested on‑chain same‑day settlement.
- The approval gives market participants a regulated on‑ramp for tokenized securities and could enable same‑day (T+0) settlement and lower operational costs if broker‑dealers and custodians adopt PSSC and its operational resilience matches legacy providers.
- The decision follows years of regulatory engagement and prior enforcement friction over BUSD, including a 2025 NYDFS settlement, underscoring that Paxos’ entry into core market plumbing is conditional on sustained oversight and controls.