Paxos becomes first blockchain-native clearing agency approved by SEC

By Editorial Team · Published May 29, 2026 · 2 min read · Source: Crypto Briefing

Paxos becomes first blockchain-native clearing agency approved by SEC

After seven years of regulatory engagement, Paxos Securities Settlement Company earns temporary registration as a clearing agency, potentially reshaping how US securities are settled.

Add us on Google by Editorial Team May. 29, 2026

The US Securities and Exchange Commission has approved Paxos Securities Settlement Company, LLC as a registered clearing agency, making it the first blockchain-native firm to earn that designation.

The approval, granted on May 27-28, elevates PSSC from a pilot program to a formally recognized clearing entity authorized to provide clearing and settlement services as a central securities depository.

From pilot to permanent

Paxos has been working toward this moment since 2019, when it first received a no-action relief letter from the SEC. The company launched its pilot service in February 2020, executing daily settlements of US equities with some of the biggest names in finance.

Bank of America, Credit Suisse, and Societe Generale all participated in the pilot phase.

“Our clearing agency registration is the result of seven years of work with the SEC,” Paxos CEO Charles Cascarilla said.

Why clearing matters more than you think

When you buy a stock, the trade doesn’t actually complete the moment you click “buy.” There’s a settlement process where ownership transfers, cash moves, and risk gets managed. In the US, that process currently runs through the Depository Trust and Clearing Corporation (DTCC).

The current standard settlement cycle for US equities is T+1, meaning trades settle one business day after execution. Paxos is pitching something more ambitious: same-day settlement, which would mean less counterparty risk and less capital tied up in the process.

For investors watching the crypto and blockchain space, the Paxos approval represents structural adoption, the kind that gets baked into how markets operate. Paxos will need to continue meeting regulatory requirements to maintain its status, as the registration is temporary.

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