Paxos Wins SEC Approval for Blockchain-Based Securities Settlement

Highlights:

• Paxos secured SEC clearing agency registration for its blockchain-based securities settlement subsidiary.
• The approval allows Paxos to offer regulated clearing and settlement for eligible securities.
• Paxos says the move strengthens its blockchain infrastructure for traditional financial markets.

Paxos announced on Thursday that its subsidiary, Paxos Securities Settlement Company, LLC, has received clearing agency registration from the U.S. Securities and Exchange Commission (SEC). The approval allows the company to provide clearing and settlement services for eligible securities in the United States.

The company said the registration makes Paxos Securities Settlement Company the first and only blockchain-native firm to receive SEC approval as a registered clearing agency. Paxos added that the approval marks a major step in its plan to connect traditional market infrastructure with blockchain-based settlement.

Paxos Securities Settlement Company has been granted registration as a clearing agency by the SEC.

We are now the only blockchain-native firm registered to provide clearing and settlement infrastructure as a central securities depository in the United States.

With this…

— Paxos (@Paxos) May 28, 2026

Clearing and settlement are important steps after a securities trade is made. Clearing checks and confirms the trade details. Settlement is the final step, where securities and money are actually exchanged. Paxos wants to support this process through blockchain-based infrastructure, but within a regulated system.

Paxos CEO and co-founder Charles Cascarilla said the approval came after years of work with regulators. He said, “After seven years of working with the SEC, beginning with our no-action letter in 2019, through our settlement pilot with leading financial institutions, PSSC is now registered as a clearing agency.”

“As a registered clearing agency, PSSC is able to provide clearing and settlement services for transactions in eligible securities,” Cascarilla added.

Paxos Moves From Pilot Testing to Formal SEC Approval

Paxos has already tested blockchain-based settlement for U.S. equities. The company said it began clearing and settling U.S. equities in February 2020 under SEC no-action relief. Major financial institutions took part in that settlement pilot.

According to Paxos, the pilot demonstrated that blockchain-based post-trade infrastructure could support modern settlement services within a regulated framework. The company said its platform can help improve efficiency and support same-day settlement for eligible securities.

Same-day settlement is important because it can reduce the time between a trade and its final completion. A shorter settlement period can also lower some risks for market participants. The approval gives the company a formal path to offer these services as a registered clearing agency.

Paxos Expands Its Regulated Blockchain Market Infrastructure

Paxos said the new registration adds another important component to its regulated blockchain infrastructure. The company already provides services to enterprises seeking to build digital asset products. These services include tokenization, custody, trading, and stablecoin-related infrastructure.

Cascarilla said the approval supports the company’s wider role in financial markets. He said, “Paxos now has the most complete infrastructure to support global enterprises bringing new products to market as securities, commodities and stablecoin markets evolve.”

According to Paxos, its products are being used by various organizations such as PayPal, Interactive Brokers, Mastercard, and Mercado Libre. Paxos also issues various digital currencies, including PayPal USD, Global Dollar, and Pax Gold. The firm claimed that it is under the regulations of some of the world’s largest financial agencies such as the OCC of the United States, FIN-FSA in Europe, and the Monetary Authority of Singapore.