US-based blockchain infrastructure provider Paxos announced on May 28, 2026, that its subsidiary, Paxos Securities Settlement Company (PSSC), has been officially registered as a securities settlement institution by the Securities and Exchange Commission (SEC). With this move, Paxos became the first blockchain-native company to achieve this status in America.
Regulatory milestone and market impact
Paxos’ approval marks a turning point for integrating blockchain technology into traditional capital markets. Settlement and clearing agencies are critical in financial transactions, matching records between buyers and sellers, validating transaction details, and ensuring the secure exchange of cash and assets. Their intermediary role drastically reduces counterparty risk in the marketplace.
The SEC approved PSSC’s registration under Section 17A of the Securities Exchange Act. Previously, this market segment in the US was dominated by established names like the Depository Trust and Clearing Corporation (DTCC). Paxos’ entrance means blockchain platforms now hold official ground in this regulated field.
Charles Cascarilla, CEO and co-founder of Paxos, explained that this registration crowns seven years of effort, beginning with a No-Action Letter obtained from the SEC in 2019.
Paxos pilot projects and blockchain infrastructure
Getting to this point was no small feat for Paxos. In February 2020, the company launched a live pilot in partnership with global financial institutions, testing a clearing and settlement system for US equities under special SEC permission.
This pilot demonstrated that same-day transactions could be executed and managed in full regulatory compliance on a blockchain platform. It also showcased lower costs and greater operational efficiency compared to traditional models. While most deals in the US market typically take several business days to settle, the Paxos solution enables “delivery versus payment” on the same day.
Glossary: A clearing and settlement agency acts as an intermediary in buy-sell transactions, ensuring the smooth and secure transfer of money and assets between parties while greatly decreasing counterparty risk.
| Clearing & Settlement Institution | Infrastructure | Operating Model | Regulator | Location |
|---|---|---|---|---|
| Paxos PSSC | Blockchain | Instant delivery/payment | SEC | US |
| DTCC | Traditional finance | Multi-day, batch processing | SEC | US |
The future of financial infrastructure with blockchain
Building on this new official status, Paxos aims to strengthen its infrastructure offerings for financial institutions and streamline the launch of products related to digital assets. The company will now be able to provide direct clearing and settlement for select securities transactions, embedding regulated blockchain infrastructure at the heart of US capital markets for the first time.
This landmark approval has triggered notable reactions in both crypto and traditional finance circles and is seen as proof that regulators are beginning to embrace blockchain-based solutions in earnest.
Paxos described the approval as a cornerstone for its growth, providing a legal and commercial foundation for future expansion.
