Rebeca Moen
May 29, 2026 05:16
Paxos secures SEC clearing agency registration, marking a milestone for blockchain in U.S. securities settlement.
Paxos Securities Settlement Company, a subsidiary of blockchain infrastructure giant Paxos, has secured registration as a clearing agency from the U.S. Securities and Exchange Commission (SEC). Announced on May 28, 2026, this approval makes Paxos the first blockchain-native firm authorized to provide clearing and settlement services as a central securities depository in the U.S.
The significance of this milestone cannot be overstated. Clearing agencies are critical to ensuring securities trades are executed smoothly, verifying transactions, and guaranteeing the exchange of assets and funds. By gaining SEC approval, Paxos has effectively bridged the gap between traditional capital markets and blockchain-based solutions, removing regulatory barriers for banks and brokerages interested in adopting crypto settlement infrastructure.
Paxos CEO Charles Cascarilla emphasized the long road to this achievement, highlighting that it followed seven years of collaboration with the SEC. This journey began with a no-action letter in 2019 that allowed Paxos to pilot a blockchain-based settlement service for U.S. equities. The pilot, launched in 2020, demonstrated the potential for same-day settlement, reduced costs, and improved operational efficiency within a regulated framework.
This breakthrough positions Paxos as a key player in integrating blockchain into traditional finance. The firm’s infrastructure is already powering crypto brokerage services for major institutions, including Charles Schwab, which recently announced its spot crypto trading launch using Paxos technology. Additionally, Paxos Labs, the company’s incubated DeFi division, raised $12 million in April 2026 to expand its Amplify platform, which focuses on enterprise tools for yield generation, lending, and branded stablecoins.
Paxos is no stranger to regulatory challenges. In 2023, the SEC issued a Wells Notice over the firm’s issuance of Binance USD (BUSD), a stablecoin tied to Binance, citing concerns over unregistered securities. The matter was resolved in 2024 when the SEC concluded its investigation without enforcement action. However, Paxos later reached a $48.5 million settlement with the New York Department of Financial Services over compliance issues related to Binance and BUSD.
The SEC’s approval comes at a time when tokenization and blockchain-based infrastructure are increasingly seen as the future of financial markets. By obtaining clearing agency registration, Paxos is now positioned to lead the transition toward blockchain-driven settlement systems, offering banks and financial institutions a regulated pathway to modernize post-trade processes.
Looking ahead, market participants will be watching closely to see how quickly Paxos’ blockchain clearing services gain adoption. This development could pave the way for broader acceptance of blockchain technology in capital markets, potentially reshaping settlement timelines and reducing operational costs for institutions.
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