TLDR
- Paxos secured SEC approval after years of talks, moving its settlement service beyond pilot status.
- The company said its blockchain system can support same-day settlement for selected securities trades.
- Paxos becomes the first blockchain-native firm approved as a registered US clearing agency.
- The approval gives banks and brokers a regulated route to test blockchain-based market settlement.
- Paxos still must meet SEC rules because its clearing agency registration remains temporary.
The US Securities and Exchange Commission has approved Paxos Securities Settlement Company as a registered clearing agency. Paxos said the approval makes it the first “blockchain-native” firm with that status in the United States.
The company said the approval allows its unit to offer clearing and settlement services. It will act as a central securities depository for selected market services.
The approval follows years of talks between Paxos and the SEC. Paxos said the process began with a no-action letter in 2019.
Paxos Moves From Pilot Program to SEC Registration
Paxos Securities Settlement Company started its pilot service in February 2020. The service tested blockchain-based settlement for US equity trades.
The SEC had allowed the pilot through a no-action letter in October 2019. That letter gave Paxos room to test the service under set terms.
Paxos Approved by SEC to Offer Clearing Services https://t.co/AyfgziU43G pic.twitter.com/hnpYhIUbcU
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Several large financial firms joined the pilot. Paxos said Bank of America, Credit Suisse, and Societe Generale took part.
Paxos CEO Charles Cascarilla said, “Our clearing agency registration is the result of seven years of work with the SEC.” He added that the work began with the 2019 no-action letter.
Approval Adds a New Option for Market Settlement
Clearing agencies help complete securities trades after buyers and sellers agree on a price. They match trades, move cash, and transfer securities.
In the US stock market, settlement now follows a T+1 cycle. That means most trades settle one business day after the trade date.
Paxos said its blockchain-based system can support same-day settlement. The company said this could reduce risk and lower some operating costs.
The firm also said the service can work inside a regulated market system. Its new status remains temporary, so it must keep meeting SEC rules.
Blockchain Settlement Gains Wall Street Attention
Paxos called the approval a “critical piece of financial market infrastructure.” The company said the decision comes as traditional markets show more interest in blockchain systems.
Banks and brokerages often need clear regulatory approval before using new market tools. SEC registration may help some firms review blockchain-based settlement options.
The approval does not replace the current US settlement system. It gives Paxos a regulated path to offer its service in the market.
Paxos also issues several digital assets and stablecoins. These include PayPal USD, Global Dollar, and Pax Gold.
Paxos Past With Regulators Remains Part of the Record
Paxos faced SEC scrutiny in 2023 over Binance USD. The agency had considered recommending action tied to the stablecoin.
Around that time, the New York Department of Financial Services ordered Paxos to stop minting new BUSD. Paxos later stopped issuing new tokens for that product.
The SEC closed its investigation in 2024. It issued a formal notice saying it would not bring an enforcement action.
Paxos also reached a $48.5 million settlement with New York regulators in August 2025. The matter related to Binance and BUSD compliance controls.
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