Paxos Seeks SEC Approval to Operate as Clearing Agency

At Solana Breakpoint, CEO Chad Cascarilla said Paxos’ SEC application aims to enable on-chain issuance of stocks, bonds, and tokenized assets like USDG and gold-backed products.

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Summary

Paxos CEO Chad Cascarilla announced on December 11 at Solana Breakpoint that the firm has applied to the U.S. Securities and Exchange Commission to become a clearing agency. Approval would allow Paxos to issue stocks and bonds directly on-chain, facilitating tokenization of traditional financial assets. Cascarilla highlighted plans to expand offerings such as USDG and gold-backed products, providing users with ownership of actual underlying assets rather than derivatives.

Terms & Concepts
  • Clearing Agency: An entity that facilitates the confirmation, settlement, and delivery of securities transactions.
  • On-chain Issuance: Creating and recording financial assets like bonds or stocks directly on a blockchain.
  • Tokenization: The process of converting rights to an asset into a digital token on a blockchain.