SEC Release No. 34-105562, May 27, 2026: The Commission granted Paxos Securities Settlement Company, LLC (PSSC) temporary registration as a clearing agency under Section 17A of the Exchange Act for a period not to exceed 18 months pursuant to Rule 17Ab2-1(c).
PSSC filed application July 14, 2025. PSSC requested temporary registration April 28, 2026. The order grants exemption from Sections 17A(b)(3)(A) and 17A(b)(3)(F).
PSSC operates as a central securities depository using private permissioned distributed ledger technology hosted on cloud infrastructure. PSSC does not act as a central counterparty (CCP) but supports bilateral delivery-versus-payment settlement.
Launch expected March 2027 at earliest per industry analysis. Follows 2019 no-action letter and live equity settlement pilot since February 2020 with major financial institutions including AT&T and General Electric.