Paxos becomes the first blockchain-native firm to secure SEC registration as a clearing and settlement agency.
Regulation & Gov ·
Paxos Securities Settlement Company, a subsidiary of blockchain infrastructure firm Paxos, has received SEC registration as a clearing agency under Section 17A of the Securities Exchange Act. The registration makes Paxos the "only blockchain-native firm" approved by the SEC to operate as a central securities depository in the United States, permitting the company to provide clearing and settlement services while meeting ongoing regulatory requirements. The approval is designated as temporary registration.
The milestone concludes a seven-year regulatory process that began with a 2019 No-Action Letter and a pilot program launched in February 2020. That pilot has been clearing and settling U.S. equities daily with participation from major financial institutions operating under SEC no-action relief. A 2022 partnership between Paxos and State Street achieved same-day settlement times for stock trading, known as "T+0."
The approval positions Paxos amid a broader shift toward tokenization in financial infrastructure, as established players including the Depository Trust & Clearing Corporation develop their own tokenization services. Paxos issues several digital assets, including PayPal's PYUSD stablecoin and Pax Gold, and recently received conditional approval to convert to an OCC national trust bank.