A Milestone for Financial Infrastructure
Paxos has officially achieved a landmark regulatory victory, becoming the first blockchain-native firm registered by the US Securities and Exchange Commission (SEC) as a clearing agency.
This development positions Paxos Securities Settlement Company as a central pillar in the modernization of US capital markets. By bridging the gap between traditional finance and distributed ledger technology, the firm aims to streamline how securities are traded and settled.
The firm previously demonstrated that blockchain-based post-trade infrastructure could deliver same-day settlement, significantly reducing operational friction.
Our clearing agency registration is the result of seven years of work with the SEC, beginning with our No-Action Letter in 2019, says Charles Cascarilla, CEO of Paxos.
Transforming Market Operations
The registration removes significant barriers for institutional players, including banks and brokerages, looking to adopt blockchain-based infrastructure. By operating as a regulated clearinghouse, Paxos provides a secure environment for the exchange of money and securities.
Frequently Asked Questions
- What is a clearing agency? It is an entity that ensures securities trades are executed cleanly by verifying trades and matching buyers and sellers.
- How does this impact Paxos’s history with the SEC? Following the closure of the BUSD investigation in 2024, this registration signals a shift toward formal, regulated integration within the US financial system.
