What did the SEC approve for Paxos?

The US Securities and Exchange Commission approved Paxos Securities Settlement Company as a registered clearing agency. Paxos says it is the first blockchain-native company authorised to provide clearing and settlement services as a central securities depository in the United States.

Why is the SEC approval important for Paxos?

The approval allows Paxos to operate regulated post-trade infrastructure for securities markets. It also gives traditional financial institutions a regulated pathway to use blockchain technology for clearing and settlement activities.

What does a clearing agency do?

A clearing agency helps ensure securities trades are completed correctly. It verifies transactions, matches buyers and sellers, and oversees the transfer of both cash and securities between parties.

Why does this matter for crypto and blockchain adoption?

A regulated blockchain-based clearinghouse reduces legal and operational uncertainty for banks, brokers and financial institutions. This could encourage greater adoption of blockchain technology in traditional financial markets.

How is Paxos different from traditional clearing firms?

Paxos built its settlement infrastructure using blockchain technology rather than traditional databases. The company argues that blockchain can enable faster settlement times, lower costs and improved operational efficiency.

What results did Paxos achieve during its SEC pilot programme?

Paxos launched a blockchain-based equities settlement pilot in 2020 after receiving a no-action letter from the SEC in 2019. According to the company, the pilot demonstrated same-day settlement capabilities within a regulated environment.

How could this approval affect Paxos' business strategy?

The approval strengthens Paxos' position as a provider of blockchain infrastructure for traditional finance. It could create opportunities to expand services for banks, brokerages and institutional investors seeking blockchain-based settlement solutions.

What stablecoins and digital assets does Paxos issue?

Paxos issues several digital assets, including PayPal USD (PYUSD), Global Dollar (USDG) and Pax Gold (PAXG). The company is one of the largest regulated stablecoin issuers in the crypto industry.

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Paxos wins SEC clearing agency approval

Written by Jon CuthbertPublished May. 29 2026

Paxos said it has become the first blockchain-native company to receive registration from the US Securities and Exchange Commission as a clearing agency.

The approval allows its subsidiary, Paxos Securities Settlement Company, to provide clearing and settlement services as a central securities depository for US securities transactions.

“Our clearing agency registration is the result of seven years of work with the SEC, beginning with our No-Action Letter in 2019 and the settlement pilot we operated with some of the world's largest and most sophisticated financial institutions,”

Said Paxos co-founder and chief executive, Charles Cascarilla.

Paxos said the approval represents a critical piece of financial market infrastructure as blockchain technology increasingly intersects with traditional capital markets and institutional finance.

The company said its blockchain-based settlement pilot demonstrated the ability to deliver same-day settlement, lower costs and improve operational efficiency within a regulated framework.

The SEC first granted Paxos a no-action letter in 2019 to test blockchain-based settlement services for US equities, with the pilot launching in February 2020.

Paxos is also the issuer of PayPal USD, Global Dollar and Pax Gold, and the approval follows years of regulatory scrutiny that included a Wells Notice over Binance USD, a closed SEC investigation in 2024 and a $48.5 million settlement with New York regulators in 2025.