Blockchain infrastructure platform and stablecoin issuer Paxos has announced that it has become the first blockchain-native firm to be registered by the U.S. Securities and Exchange Commission (SEC) as a clearing agency. The company's subsidiary, Paxos Securities Settlement Company, is now the only blockchain company in the U.S. authorized to provide clearing and settlement services as a central securities depository. This is reported by Cointelegraph.com reports .
This decision represents a critical piece of financial market infrastructure as blockchain technology and traditional capital markets continue to merge. Clearing agencies ensure that securities trades are executed correctly. Buyers and sellers of stocks do not trade directly; they require providers that confirm the transaction, match the parties, and guarantee the exchange of money and securities.
The SEC-approved blockchain clearing center removes barriers for banks and brokerage firms to build crypto infrastructure. Paxos has been working with the SEC on this initiative since 2019. The company's pilot project proved that blockchain-based post-trade infrastructure enables same-day settlement, reduces costs, and increases operational efficiency.
Paxos founder and CEO Charles Cascarilla emphasized that this registration is the result of seven years of work with the SEC. Currently, Paxos is the issuer of several digital assets, including PayPal USD (PYUSD), Global Dollar (USDG), and Pax Gold (PAXG). Previously, the company faced conflicts with the regulator due to the Binance USD (BUSD) stablecoin, but the new license opens up new opportunities for the company.
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