Paxos Secures SEC Registration as Clearing Company

Paxos Securities Settlement Firm, a subsidiary of blockchain infrastructure agency Paxos, has acquired SEC registration as a clearing company beneath Part 17A of the Securities Trade Act.

The registration makes Paxos the “solely blockchain-native agency” authorised by the SEC to function as a central securities depository in the US, the corporate mentioned in a press launch.

The SEC order describes the approval as a brief registration, permitting the corporate to offer clearing and settlement companies whereas assembly ongoing regulatory necessities. “Most significantly, it permits us to supply essentially the most full infrastructure for our companions to proceed evolving with the market and blockchain know-how,” Paxos CEO and Co-Founder Charles Cascarilla mentioned in an announcement.

The milestone caps a seven-year regulatory journey, Cascarilla mentioned, “starting with our No-Motion Letter in 2019 and the settlement pilot we operated with a few of the world’s largest and most subtle monetary establishments.”

That pilot program, which began in February 2020, has been clearing and settling U.S. equities each day with participation from “prime world monetary establishments” working beneath SEC no-action aid, the agency mentioned. In 2022, a blockchain-based pilot launched by Paxos in partnership with State Avenue achieved same-day settlement instances for inventory buying and selling, often known as “T+0.”

The registration comes as established infrastructure suppliers embrace tokenizationwith the Depository Belief & Clearing Company lately revealing plans for its own tokenization service backed by main Wall Avenue corporations.

Paxos points a number of digital property together with PayPal’s PYUSD stablecoin and Pax Gold (PAXG). In October 2025, an “inside technical error” noticed the agency accidentally mint after which burn 300 trillion PYUSD tokens. Months later, the corporate received conditional approval to transform to an OCC nationwide belief financial institution, enabling it to function beneath a single federal ruleset as an alternative of a patchwork of state laws.