SEC Approves Paxos as First 'Blockchain-Native' Clearing Agency

U.S. stock trades must undergo post-trade clearing and settlement, with the market having moved to a T+1 cycle in 2024. Paxos secured an SEC no-action letter in 2019 and launched a pilot for settling U.S. equities on-chain in February 2020. The approval allows banks and brokerages to accelerate settlement through regulated blockchain infrastructure and free up tied-up capital, while introducing a new competitor to the DTCC-dominated market.

The SEC approved Paxos Securities Settlement Company (PSSC) as a clearing agency on May 27, 2026, and Paxos announced the decision the next day. The approval makes PSSC the first blockchain-native central securities depository in the United States. Its temporary registration can remain in effect for up to 18 months and permits same-day or near-real-time clearing and settlement of eligible securities. The case does not involve an investment or acquisition, and official documents disclosed no transaction value.