SEC Approves Paxos as First Blockchain-Native Clearing Agency

• Paxos said it has become the first blockchain-native firm granted SEC registration as a clearing agency.
• The approval allows Paxos Securities Settlement Company to provide clearing and settlement services as a central securities depository in the United States.
• The milestone follows a blockchain settlement pilot launched in 2020 after the SEC issued a no-action letter in 2019.
• The development comes after the SEC closed its investigation into Paxos in 2024 and years after regulatory scrutiny surrounding Binance USD (BUSD).

Paxos Secures SEC Clearing Agency Registration

Blockchain infrastructure platform and stablecoin issuer Paxos announced that its subsidiary, Paxos Securities Settlement Company, has received registration from the U.S. Securities and Exchange Commission (SEC) as a clearing agency. According to the company, it is the only blockchain-native firm approved to provide clearing and settlement services as a central securities depository in the United States.

The approval represents a significant development for blockchain-based financial infrastructure as digital asset technology continues to intersect with traditional capital markets. Clearing agencies play a critical role in financial markets by verifying trades, matching buyers and sellers, and ensuring the proper exchange of securities and funds.

Paxos said that having a registered blockchain-based clearinghouse could reduce barriers for banks, brokerages, and other financial institutions seeking to build regulated crypto and blockchain-based infrastructure.

Approval Follows Years of Regulatory Engagement

The SEC’s approval follows a multi-year process that began in October 2019 when the agency issued Paxos a no-action letter permitting the company to test a blockchain-based settlement platform for U.S. equities.

Paxos launched that settlement service in February 2020. According to the company, the pilot demonstrated that blockchain technology could support same-day settlement while reducing costs and improving operational efficiency within a regulated framework.

Commenting on the approval, Paxos co-founder and CEO Charles Cascarilla said: “Our clearing agency registration is the result of seven years of work with the SEC, beginning with our No-Action Letter in 2019 and the settlement pilot we operated with some of the world’s largest and most sophisticated financial institutions.”

The registration marks the latest step in Paxos’ efforts to expand regulated blockchain infrastructure in the U.S. financial system.

Background Includes BUSD Regulatory Scrutiny

The announcement comes after several years of regulatory scrutiny involving Paxos and Binance USD (BUSD), the stablecoin previously issued by Paxos in partnership with cryptocurrency exchange Binance.

In 2023, Paxos received a Wells Notice from the SEC indicating that the agency was considering enforcement action related to BUSD, which regulators viewed as a potential unregistered security. During the same period, the New York Department of Financial Services (NYDFS) directed Paxos to stop minting new BUSD tokens.

The regulatory situation shifted in 2024 when the SEC formally closed its investigation and notified Paxos that it would not pursue enforcement action. In August 2025, Paxos also reached a $48.5 million settlement with NYDFS related to Binance and BUSD compliance matters.

Paxos currently issues several digital assets and stablecoins, including PayPal USD ($PYUSD), Global Dollar ($USDG), and Pax Gold ($PAXG). On April 14, 2026, Paxos Labs announced a $12 million funding round led by Blockchain Capital, with participation from Robot Ventures, Maelstrom Fund, and Uniswap Labs. The company, incubated within Paxos, said the capital will help expand its institutional-grade platform for branded stablecoins, on-chain yield products, and crypto-backed lending. Paxos Labs offers a single integration that enables businesses to launch and manage multiple digital asset services. The funding marks a key milestone in the company’s efforts to accelerate institutional adoption of digital asset infrastructure.

The newly granted clearing agency registration adds another regulated business line to the company’s operations and positions Paxos within a key area of U.S. market infrastructure as blockchain-based settlement systems continue to develop.

FAQs

1. What is Paxos’ new SEC approval?
Paxos received SEC registration to operate as a clearing agency in the U.S.

2. Why is this significant?
It makes Paxos the first blockchain-native firm approved for securities clearing and settlement.

3. When did Paxos begin working on this initiative?
The process began with an SEC no-action letter issued in 2019.

4. Which stablecoins does Paxos issue?
Paxos issues $PYUSD, $USDG, and $PAXG.

Source: PAXOS