'First and only': Paxos secures SEC registration as clearing and settlement agency

Paxos announced Thursday that its subsidiary, Paxos Securities Settlement Company (PSSC), has received registration as a clearing agency from the U.S. Securities and Exchange Commission, under the Securities Exchange Act of 1934.

The registration allows PSSC to offer clearing and settlement services for eligible securities transactions, according to its release. The company said it is the "first and only blockchain-native" firm to get such approval from the SEC.

"Our clearing agency registration is the result of seven years of work with the SEC," said Charles Cascarilla, CEO and co-founder of Paxos. "Most importantly, it allows us to offer the most complete infrastructure for our partners to continue evolving with the market and blockchain technology."

Paxos said it has been conducting clearing and settlement pilots of U.S. equities with major global financial institutions since 2020 under the SEC's no-action relief. The pilots demonstrated that blockchain-based post-trade infrastructure could bring efficiency through same-day settlements and reduced costs, per the release.

"The approval represents a critical piece of financial market infrastructure as blockchain technology and traditional capital markets continue to converge," Paxos said.

Paxos has partnered with companies such as PayPal, Interactive Brokers, Mastercard, and Mercado Libre, and issues multiple stablecoins, including PayPal USD (PYUSD) and Pax Gold (PAXG).