The US Securities and Exchange Commission has approved Paxos Securities Settlement Company, LLC (PSSC), a subsidiary of Paxos, as a registered clearing agency.

With the registration, PSSC becomes the only blockchain-native company authorized to provide clearing and settlement services as a central securities depository in the US securities market. The approval highlights the increasing integration between blockchain-based financial infrastructure and traditional capital markets.

The approval follows years of regulatory collaboration with the SEC, including an SEC No-Action Letter issued in 2019 and a blockchain settlement pilot involving major financial institutions, according to CEO Charles Cascarilla.

“As a registered clearing agency, PSSC is able to provide clearing and settlement services for transactions in eligible securities. Most importantly, it allows us to offer the most complete infrastructure for our partners to continue evolving with the market and blockchain technology,” Cascarilla stated.

Since February 2020, Paxos has cleared and settled US equities using blockchain infrastructure under SEC no-action relief, demonstrating same-day settlement capabilities, improved operational efficiency, and reduced costs within a regulated environment.

The SEC approval expands Paxos’ regulated infrastructure capabilities and supports its efforts to help institutions adopt digital asset and tokenization technologies.