SEC approves Paxos as ‘blockchain-native’ clearing agency
Paxos says it has become the first blockchain-native firm registered by the US SEC as a clearing agency through its subsidiary, Paxos Securities Settlement Company. The approval lets it provide clearing and settlement services as a central securities depository, which Paxos says is an important step as blockchain and traditional capital markets converge. Clearing agencies verify, match, and settle securities trades; a regulated blockchain clearinghouse could make it easier for banks and brokerages to build crypto-based market infrastructure. Paxos says its earlier SEC no-action letter and 2020 settlement pilot showed blockchain post-trade systems can achieve same-day settlement, lower costs, and improve efficiency. Paxos is also a major stablecoin and digital asset issuer, including PYUSD, USDG, and PAXG. Its history with regulators has included a 2023 SEC Wells Notice over BUSD, though the SEC later closed the case.
