Paxos, the US stablecoin operator, announced on Tuesday that it will apply for an official clearing agency license from the Securities and Exchange Commission, another practical example of blockchain technology used in traditional markets.

The acquisition of the Paxos license came after a successful beta test of the settlement system on the same day, according to Reuters reports. Credit Suisse, a Zurich-based financial institution; And Instinet, a commercial arm of Nomura Holdings Inc. , Participated in the pilot by settling shares registered in the United States on the same day.

Paxos says the trading was the first direct implementation of blockchain technology for US stocks. It currently takes two days to complete trading in the US stock markets. Work on shortening this time began after the GameStop saga.

Organizations must register with the US Securities and Exchange Commission before opening a clearinghouse. As the Securities and Exchange Commission notes:

Article 17A of the Stock Exchange Law of 1934 (the “Stock Exchange Law”) and Article 17Ab2-1 require that the organization register with the committee or exempt it from registration before operating as a clearinghouse.
Paxos made headlines late last year when it raised $ 142 million from major investors including PayPal and Mithril Capital to expand the financial market infrastructure. The stablecoin issuer also wants permission to become a fully regulated cryptocurrency bank.