Paxos Just Won the First SEC License to Settle U.S. Stocks on a Blockchain

Paxos announced on May 28, 2026 that the SEC granted its subsidiary, Paxos Securities Settlement Company, registration as a clearing agency under Section 17A of the Securities Exchange Act of 1934.

That makes PSSC the only blockchain-native firm approved by the SEC to provide clearing and settlement services as a central securities depository in the United States.

A central securities depository sits at the center of how stock trades actually close. It is the entity that records ownership and finalizes the transfer of securities and cash after a trade is matched.

In the U.S., that role has long belonged to legacy infrastructure like the DTCC. Paxos now has a registered seat in that same layer, built on blockchain rails.

Paxos Securities Settlement Company has been granted registration as a clearing agency by the SEC. We are now the only blockchain-native firm registered to provide clearing and settlement infrastructure as a central securities depository in the United States.

With this…

— Paxos (@Paxos) May 28, 2026

Paxos says the approval is the result of seven years of work with the SEC, starting with a 2019 no-action letter and a live settlement pilot that followed.

As a registered clearing agency, PSSC can provide clearing and settlement services for transactions in eligible securities. That is the legal authority that turns the pilot into real market infrastructure.

Paxos said the approval gives PSSC registered clearing-agency status and lets it provide clearing and settlement services as a central securities depository.

According to Paxos: Paxos announced on May 28, 2026 that its subsidiary Paxos Securities Settlement Company, LLC was granted registration as a clearing agency by the SEC under Section 17A of the Securities Exchange Act of 1934. Paxos said the registration makes PSSC the only blockchain-native firm approved by the SEC as a registered clearing agency to provide clearing and settlement services as a central securities depository in the United States.

CEO Charles Cascarilla said the registration followed seven years of work with the SEC, beginning with a 2019 no-action letter and a settlement pilot. Paxos said the 2020 pilot cleared and settled U.S. equities daily with participation from large financial institutions and demonstrated same-day settlement, reduced costs, and operational efficiency inside a regulated framework.

Paxos announced on May 28, 2026 that Paxos Securities Settlement Company, LLC was granted registration as a clearing agency by the SEC under Section 17A of the Securities Exchange Act of 1934. Paxos said PSSC is the only blockchain-native firm approved by the SEC as a registered clearing agency to provide clearing and settlement services as a central securities depository in the United States.

The official paper trail backs it up. The SEC’s Paxos file page , under File No.

600-39, lists Release No. 34-105562, dated May 27, 2026, as an order granting temporary registration as a clearing agency under Section 17A.

Paxos says the 2020 live clearing and settlement pilot operated under SEC no-action relief and demonstrated same-day settlement, lower costs, and improved operational efficiency inside a regulated framework.

Same-day settlement is the part that matters for traders and institutions. Traditional equity settlement runs on a delay, which ties up capital and creates counterparty risk while trades sit in limbo.

Blockchain rails can shorten that window toward same-day or nearly instant settlement for eligible securities.

NEW: Paxos wins SEC approval to clear U.S. stocks on blockchain

— CoinDesk (@CoinDesk) May 29, 2026

SEC records also list the earlier notices and proceedings tied to Paxos Securities Settlement Company’s clearing agency application.

According to SEC: The SEC’s Paxos file page for File No. 600-39 lists Release No.

34-105562, dated May 27, 2026, as an Order Granting an Application for Temporary Registration as a Clearing Agency under Section 17A of the Securities Exchange Act of 1934. The same page lists earlier notices and proceedings tied to Paxos Securities Settlement Company’s clearing agency application.

Use this as the official SEC docket backbone for the approval timeline and legal category, while using Paxos and news coverage for plain-English explanation. Paxos said that, as a registered clearing agency, PSSC can provide clearing and settlement services for transactions in eligible securities.

Paxos said the 2020 live clearing and settlement pilot operated under SEC no-action relief and demonstrated same-day settlement, lower costs, and improved operational efficiency within a regulated framework. The SEC’s Paxos file page lists Release No.

34-105562, dated May 27, 2026, as an order granting an application for temporary registration as a clearing agency under Section 17A.

CoinDesk reported on May 29, 2026 that the milestone makes Paxos the first blockchain firm authorized to operate as a central securities depository for traditional equities in the United States.

CoinDesk reported on May 29, 2026 that the approval makes Paxos the first blockchain firm authorized to operate as a central securities depository for traditional equities in the United States.

That tokenization point is the bigger story. Institutions have wanted to put real-world assets on chain, and the missing piece was a regulated way to clear and settle those trades.

A registered CSD running on blockchain gives market participants a pipeline to clear and settle digital asset trades involving traditional equities.

Paxos is not a fringe name here. Its blockchain infrastructure is used by PayPal, Interactive Brokers, Mastercard, and Mercado Libre, and it issues assets including PayPal USD, Global Dollar, and Pax Gold.

The Block confirmed the registration and the first-mover framing, calling PSSC the first blockchain-native firm to obtain such a license.

For years the crypto pitch on tokenized equities ran into the same wall: the regulated settlement layer was closed. That wall now has a door, and Paxos walked through it with the SEC’s signature on the order.

It is quiet market plumbing, but it reshapes what serious institutions can build. The post-trade layer of U.S. markets just got a blockchain-native participant with full standing.

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