Paxos breaks into U.S. securities settlement as SEC registers blockchain-based clearing agency
The U.S. Securities and Exchange Commission has registered Paxos Securities Settlement Company (@Paxos) as a clearing agency under Section 17A, making it the only blockchain-native firm authorized to operate as a central securities depository in the United States. CEO Charles Cascarilla (@chadcascarilla) said the approval follows seven years of work, starting with a 2019 no-action letter and a live U.S. equities settlement pilot that has been running since 2020. The pilot cleared and settled real equities on a daily basis with major financial institutions, which helped support the application. The SEC's (@SECGov) order grants the registration on a temporary basis, a common step as the agency develops a framework for blockchain-based settlement. The decision places a blockchain-built firm at the heart of U.S. securities settlement operations.