NEW YORK, 29 May 2026, Paxos has achieved a major milestone in the evolution of blockchain-powered financial infrastructure after its subsidiary, Paxos Securities Settlement Company (PSSC), received clearing agency registration from the U.S. Securities and Exchange Commission (SEC). The approval positions PSSC as the first blockchain-native company authorized to provide regulated clearing and settlement services for securities transactions in the United States.
The registration marks a significant development for both traditional finance and digital asset markets, highlighting growing regulatory acceptance of blockchain technology in capital markets. Industry experts believe the approval could accelerate modernization efforts across securities settlement systems while increasing efficiency, transparency, and operational resilience.
The SEC granted PSSC registration under Section 17A of the Securities Exchange Act of 1934, allowing the company to operate as a registered clearing agency and central securities depository. The approval follows a lengthy regulatory review process that included multiple filings, amendments, public comment periods, and extensive engagement with regulators.
Paxos CEO and Co-Founder Charles Cascarilla stated that the achievement reflects years of collaboration with regulators and builds on the company’s earlier no-action relief and settlement pilot programs. Paxos has spent several years developing blockchain-based settlement infrastructure designed to improve how securities transactions are processed and recorded.
The approval establishes PSSC as a regulated participant within the U.S. securities market infrastructure, enabling the company to provide clearing and settlement services for eligible securities transactions through blockchain technology.
Traditional securities settlement systems often rely on legacy infrastructure and multiple intermediaries to complete transactions. Blockchain technology offers an alternative framework that can streamline recordkeeping, improve transparency, and potentially reduce settlement times.
Paxos has long advocated for flexible settlement cycles, including same-day and near-instant settlement capabilities. Through its blockchain-based infrastructure, the company aims to enable more efficient transaction processing while maintaining regulatory compliance. Earlier Paxos settlement pilots demonstrated the potential for faster settlement cycles compared to conventional market infrastructure.
The SEC registration provides a regulatory foundation for broader adoption of these capabilities and may encourage other market participants to explore blockchain-enabled financial services.
The approval comes at a time when financial institutions and regulators worldwide are increasingly evaluating blockchain technology for use in traditional capital markets. Major banks, broker-dealers, and market infrastructure providers have been exploring distributed ledger technology to improve settlement efficiency and reduce operational risk.
PSSC’s registration followed an application process that began in 2025, with the SEC conducting detailed reviews regarding governance, participant access, operational safeguards, investor protection measures, and compliance standards. Regulatory filings indicate that the Commission examined whether the company could facilitate prompt and accurate settlement while safeguarding customer assets and promoting fair market access.
Market observers view the decision as evidence that blockchain-based infrastructure can operate within existing securities regulations when appropriate oversight and controls are in place.
The registration is expected to strengthen Paxos’ position within both digital asset and traditional financial markets. As demand for modernized market infrastructure grows, blockchain-powered clearing and settlement services could become increasingly attractive to financial institutions seeking efficiency gains.
For the broader industry, the approval may serve as a blueprint for future regulatory engagement between blockchain companies and financial authorities. It also demonstrates that blockchain-native firms can achieve compliance standards required for critical financial market functions.
With SEC registration now secured, Paxos Securities Settlement Company is positioned to play a larger role in the ongoing convergence of traditional finance and blockchain technology. The milestone represents a meaningful step toward the modernization of U.S. securities settlement infrastructure and could help shape the next generation of regulated financial markets.
Binance celebrates its 9th anniversary livestream event, which is taking center stage as the world's…
If you thought the crypto market had finally run out of bold predictions, Tom Lee…
The race to launch memecoin exchange-traded funds (ETFs) is beginning to look less like a…
For years, the U.S. crypto industry has operated under a regulatory strategy that often felt…
If you expected Michael Saylor’s Strategy to announce yet another massive Bitcoin buying spree, prepare…
Bitcoin has once again reminded overleveraged traders that the market doesn't care about optimism or…
This website uses cookies.