In short
- Paxos Securities Settlement Company has received SEC registration as a clearing agency.
- This subscription allows Paxos to act as a central security repository and provide management and implementation services, and meet regulatory requirements.
- The approval follows seven years of action, including the 2019 No-Action Letter and a pilot program that has been in effect since February 2020.
Paxos Securities Settlement Company, a subsidiary of blockchain construction company Paxos, has received SEC registration as a clearing agency under Section 17A of the Securities Exchange Act.
The registration makes Paxos the “only blockchain-native firm” authorized by the SEC to operate as a central securities depository in the United States, the company said in a press release.
The SEC rules describe the approval as a temporary registration, allowing the company to provide regulatory services and establish it while meeting regulatory requirements. “Most importantly, it gives us the opportunity to provide sufficient resources for our partners to continue to evolve with the market and blockchain technology,” said Paxos CEO and Co-Founder Charles Cascarilla in a statement.
The event completes the seven-year mandate, Mr. Cascarilla said, “starting with the No-Action Letter in 2019 and the pilot in which we worked with the largest financial institutions in the world.”
The driver program, which he started as of February 2020, it has been processing and settling US currency on a daily basis with “the world’s top financial institutions” operating under the SEC without taking action, the company said. In 2022, a blockchain pilot which was founded by Paxos in partnership with State Street found a fixed time of the same day for the trading of stocks, called “T+0.”
The subscription comes as traditional equipment providers embrace it a symboland Depository Trust & Clearing Corporation recently reveal its plans for tokenization service with the support of major Wall Street firms.
Paxos offers several digital assets including PayPal’s PYUSD stablecoin and Pax Gold (PAXG). In October 2025, an “internal technical error” saw the company accidental seed then burn PYUSD 300 trillion tokens. Months later, the company received a formal permit to convert it into a national OCC bank, making it operate under federal rather than state law.
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