The SEC last Wednesday granted Paxos Securities Settlement Company, LLC temporary registration as a clearing agency under Section 17A of the Exchange Act, the order shows. The registration is valid for up to 18 months.
PSSC, a wholly owned subsidiary of Paxos’s parent company Kabompo Holdings, applied to provide clearance and settlement services as a central securities depository and securities settlement system. The temporary approval came with exemptions from two core clearing agency standards covering organisational capacity and safeguarding of securities and funds.
Filing timeline
PSSC filed its Form CA-1 application on July 14, 2025, amended it on February 27, 2026, and requested temporary registration under Rule 17Ab2-1(c) on April 28, 2026. The SEC had instituted proceedings on the application in November 2025 and extended its review period in January 2026.
The Commission received two comment letters, one from Robinhood expressing support and one from DTCC seeking clarity on corporate actions processing, netting arrangements, and recovery and wind-down planning.
The order was published in the Federal Register on May 29. It sits alongside a series of SEC actions in 2026 touching tokenised securities and distributed ledger technology, including a Nasdaq rule change for tokenised trading approved in March and a no-action letter for DLT-based collateral transfers issued in May.
