{"id":220428,"date":"2021-04-06T21:45:00","date_gmt":"2021-04-06T18:45:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/paxos-applies-for-clearing-license-with-sec-following-successful-pilot-tests\/"},"modified":"2021-04-06T21:45:00","modified_gmt":"2021-04-06T18:45:00","slug":"paxos-applies-for-clearing-license-with-sec-following-successful-pilot-tests","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/paxos-applies-for-clearing-license-with-sec-following-successful-pilot-tests\/","title":{"rendered":"# Paxos applies for clearing license with SEC following successful pilot tests"},"content":{"rendered":"

“# Paxos app<\/a>lies for clearing license with SEC following successful pilot tests <\/strong>”
\n<\/p>\n

Paxos, a United States-based stablecoin operator, announced Tuesday that it will apply for a formal clearing agency license with the Securities and Exchange Commission, or SEC, in a move that would bring another practical use case for blockchain technology<\/a> in traditional markets.\u00a0<\/p>\n

As Reuters reported<\/a>, the pursuit of an agency license by Paxos follows a successful pilot test of its same-day settlement system. Credit Suisse, a Zurich-based financial institution, and Instinet, the trading arm of Nomura Holdings Inc., participated in the pilot by settling U.S.-listed stock trades on the same day. <\/p>\n

Paxos says the trades represented the first live application of blockchain technology for U.S. equities. It currently takes two days to settle a trade for equity markets in the U.S. Efforts to shorten this time have gained traction in the wake of the Game<\/a>Stop saga.<\/p>\n

Entities must register with the U.S. securities regulator before they operate a clearing house. As the SEC notes<\/a>: <\/p>\n

\u201cSection 17A of the Securities Exchange Act of 1934 (\u201cExchange Act\u201d) and Rule 17Ab2-1 require an entity to register with the Commission or obtain an exemption from registration prior to performing the functions of a clearing agency.\u201d<\/p><\/blockquote>\n

Paxos made headlines late last year when it raised $142 million from major investors including PayPal and Mithril Capital to expand its financial market infrastructure. The stablecoin issuer is also seeking approval to become a fully-regulated crypto bank.<\/p>\n