Paxos Securities Settlement Company (PSSC) has received approval from the U.S. Securities and Exchange Commission (SEC) to provide clearing and settlement services as a central securities depository.
The SEC approved the application of Paxos Securities Settlement Company (PSSC), a subsidiary of Paxos, for registration under Section 17A of the Securities Exchange Act of 1934. The registration allows the company to operate as a central securities depository and provide clearing and settlement services for transactions in eligible securities in the United States.
Paxos has become the first and only blockchain-native company authorized to provide clearing and settlement services in the U.S. market as a registered clearing agency.
Charles Cascarilla, CEO and Co-Founder of Paxos, said the approval was the result of seven years of engagement with the SEC, a process that began in 2019. As part of this effort, the company conducted a series of blockchain-based settlement tests with participation from several of the world’s largest financial institutions. According to Cascarilla, the new status will enable Paxos to offer partners a full range of infrastructure services for securities transactions and support the broader adoption of blockchain technology in financial markets.
PSSC already has experience operating within a regulated framework. Since February 2020, the company has been conducting daily clearing and settlement of U.S. equity trades under prior SEC approval that allowed it to test its system under regulatory supervision. The pilot program demonstrated the feasibility of same-day settlement while also highlighting the potential to reduce operational costs and improve the efficiency of post-trade infrastructure.
The registration expands the range of regulated services offered by Paxos, which specializes in blockchain infrastructure and asset tokenization. The company works with partners including PayPal, Interactive Brokers, and Mastercard, and issues digital assets such as PayPal USD (PYUSD) and Global Dollar (USDG). It is also worth noting that in December 2025, the Office of the Comptroller of the Currency (OCC) granted conditional approval to Paxos’ application to establish a national trust bank in the United States.
