Paxos Secures SEC Registration as Clearing Agency
Paxos Securities Settlement Company has received SEC registration as a clearing agency under Section 17A, making Paxos the only blockchain-native firm approved to operate as a U.S. central securities depository. The SEC order grants temporary registration, allowing Paxos to provide clearing and settlement services while meeting ongoing regulatory requirements. Paxos says this caps a seven-year regulatory path that began with a 2019 no-action letter and included a settlement pilot launched in 2020 with major financial institutions. That pilot has been clearing and settling U.S. equities daily, and a 2022 partnership with State Street reached same-day, or T+0, settlement. The approval comes as tokenization gains traction across market infrastructure, with DTCC also developing a tokenization service. Paxos also issues PYUSD and PAXG and previously received conditional approval to become an OCC national trust bank.
