Blockchain infrastructure platform and stablecoin issuer Paxos says it has become the first “blockchain native” company to be granted registration as a clearing agency by the US Securities and Exchange Commission.
Paxos he said on Thursday that its subsidiary, Paxos Securities Settlement Company, has become “the only blockchain-based company” approved by the SEC to provide clearing and settlement services as a central securities depository in the US.
The approval represents a “critical piece of financial market infrastructure” as blockchain technology and traditional capital markets continue to converge, the company added.
Clearing agencies ensure that securities trading is carried out cleanly. Buyers and sellers of stocks do not trade directly and need clearing and settlement providers who verify the trade, connect the buyer and seller, and then ensure that the actual exchange of money and securities takes place correctly.
The SEC-approved registered blockchain clearinghouse removes barriers for banks and brokerages to build crypto-based infrastructure.
In October 2019, the SEC issued a no-action letter allowing Paxos to pilot a blockchain-based settlement service for US stocks, and the service launched in February 2020.
Paxos said the pilot demonstrated that a blockchain-based post-trade infrastructure can provide same-day settlement, reduce costs and improve operational efficiency within a fully regulated framework.
“Our clearing agency registration is the result of seven years of work with the SEC, beginning with our 2019 debarment letter and the pilot settlement we pursued with some of the largest and most sophisticated financial institutions in the world,” said Paxos Co-Founder and CEO Charles Cascarilla.
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Paxos is the issuer of several stablecoins and digital assets, including PayPal USD (PYUSD), Global Dollar (USDG), and Pax Gold (PAXG).
The company had a rocky history with the SEC under its former chairman, Gary Gensler, after receiving a Wells notice in 2023, with the agency planning to recommend enforcement over the issuance of Binance USD (BUSD), a stablecoin linked to crypto exchange Binance, which the SEC deemed an unregistered security.
Around the same time, the New York Department of Financial Services (NYDFS) ordered Paxos to stop minting new BUSD.
The SEC closed its investigation in 2024 and issued a formal notice of termination, stating that it would not pursue enforcement action. Paxos also reached a $48.5 million settlement with NYDFS in August 2025 over Binance and BUSD compliance issues.
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