Paxos Becomes First Blockchain-Native Firm to Secure SEC Clearing Agency Registration

May 29, 2026

Paxos Securities Settlement Company received SEC clearing agency registration under Section 17A, becoming the first blockchain-native firm to achieve this status after seven years of engagement beginning with a 2019 no-action letter. A 2020 settlement pilot processed equity trades for AT&T and General Electric, demonstrating lower costs. The registration places Paxos inside the same regulated post-trade infrastructure layer as DTCC, which partnered with Stellar Development Foundation to tokenize Russell 1000 equities and US Treasuries in first half of 2027.

SEC clearing agency registration

▪Paxos Securities Settlement Company, LLC (PSSC) was granted registration as a clearing agency by the U.S. Securities and Exchange Commission under Section 17A of the Securities Exchange Act of 1934.
▪The SEC designated May 3, 2026, as the deadline for the Commission to grant or deny PSSC's application in a Federal Register notice published in February 2026.
▪Paxos Securities Settlement Company is the only blockchain-native firm registered to provide clearing and settlement services as a central securities depository in the United States.
▪Paxos Securities Settlement Company became the first blockchain-native firm registered as a clearing agency under SEC Section 17A.
▪The SEC registration of Paxos Securities Settlement Company is described as temporary in the SEC's order.
▪Paxos announced on May 29, 2026, that Paxos Securities Settlement Company, LLC received SEC clearing agency registration.

Seven-year regulatory pathway

▪Paxos Securities Settlement Company's clearing agency registration is the result of seven years of engagement with the SEC, beginning with a 2019 No-Action Letter.
▪The 2020 Paxos settlement pilot demonstrated lower costs and operational efficiency within an SEC-supervised framework.
▪Paxos conducted a 2020 settlement pilot that processed equity trades for AT&T and General Electric.

Blockchain settlement infrastructure

▪Paxos Securities Settlement Company as a registered CSD can hold and settle traditional securities trades directly on blockchain rails, providing same-day or near-instant settlement for eligible securities.
▪Paxos Securities Settlement Company's clearing agency registration places Paxos inside the same regulated post-trade infrastructure layer as the Depository Trust & Clearing Corporation (DTCC).
▪The Paxos Securities Settlement Company registration allows institutional participation at scale in blockchain-based settlement.

Competitive tokenization landscape

▪Nasdaq and NYSE are operating tokenized equity trading under DTC's three-year tokenization pilot.
▪The SEC's planned innovation exemption for tokenized stocks has been delayed amid concerns about third-party synthetic tokens.
▪DTCC announced a partnership with the Stellar Development Foundation to tokenize DTC-custodied assets, including Russell 1000 equities and US Treasuries, on Stellar's public blockchain in the first half of 2027.
▪Nasdaq won SEC approval for tokenized equity trading in March 2026.

Paxos regulatory footprint

▪Paxos is prudentially regulated by the MAS in Singapore.
▪Paxos is prudentially regulated by the OCC in the United States.
▪Paxos partners with PayPal, Interactive Brokers, Mastercard, and Mercado Libre.
▪Paxos is prudentially regulated by FIN-FSA in Europe.