SEC Approves Paxos as First Blockchain-Native Clearing Agency in the US

Paxos has received approval from the U.S. Securities and Exchange Commission (SEC) to operate as a registered clearing agency, becoming the first blockchain-native company allowed to provide securities clearing and settlement services in the United States.

The approval gives Paxos Securities Settlement Company permission to operate as a central securities depository, helping verify and settle trades between buyers and sellers in financial markets. Clearing agencies play an important role by confirming transactions and ensuring money and securities are exchanged correctly.

Blockchain Infrastructure Gains Ground on Wall Street

Paxos said the decision marks an important step as traditional finance increasingly explores blockchain technology. The company believes regulated blockchain settlement can reduce costs, improve efficiency and support faster same-day trade settlement.

The approval follows years of work with regulators. In 2019, Paxos received permission to test a blockchain-based settlement system and launched a pilot program in 2020 with major financial institutions.

Paxos Moves Forward After Past Regulatory Challenges

The development also comes after earlier regulatory pressure linked to Binance USD (BUSD). While investigations were later closed, Paxos reached a settlement with New York regulators in 2025 over compliance matters.