Opportunity
Federal Register #Release No. 34-105562, File No. 600-39
SEC Temporary Registration of Paxos as Clearing Agency for Blockchain-Based Securities Settlement
Buyer
Securities and Exchange Commission
Posted
May 29, 2026
Identifier
Release No. 34-105562, File No. 600-39
NAICS
522320
The Securities and Exchange Commission (SEC) has granted temporary registration to Paxos Securities Settlement Company, LLC (PSSC) as a clearing agency under the Securities Exchange Act of 1934. - Government Buyer: - Securities and Exchange Commission (SEC), Division of Investment Management, Chief Counsel's Office - OEMs and Vendors: - Paxos Securities Settlement Company, LLC (PSSC) - Cloud service provider (not specifically named) - Products/Services Requested: - Clearing agency services for securities clearance and settlement - Includes operation as a central securities depository (CSD) and securities settlement system - Utilizes blockchain technology (Paxos Ledger) and bilateral netting among counterparty pairs - Service line item: Clearance and settlement services as a CSD using blockchain technology - Unique or Notable Requirements: - Temporary registration period of up to 18 months with a ramp-up phase - Limit of ten participants during the ramp-up - Compliance with Regulation SCI and robust risk management, margin, and participant discipline rules - Use of a cloud service provider for core operations, with requirements for geographic diversity and operational resilience - DTC participation and ongoing regulatory compliance - No specific product part numbers or purchase quantities requested - Place of Performance: - SEC Headquarters, 1900 K Street NW, Washington, DC 20006
Description
The Securities and Exchange Commission (SEC) has issued an order granting temporary registration to Paxos Securities Settlement Company, LLC as a clearing agency under Section 17A of the Securities Exchange Act of 1934. This temporary registration authorizes Paxos to operate as a clearing agency subject to certain conditions and regulations. The order allows Paxos to perform clearing and settlement functions for securities transactions, ensuring the safety and efficiency of securities markets. The registration is temporary and subject to renewal or termination based on SEC review.