Paxos Wins SEC Approval to Clear U.S. Stocks on Blockchain

Paxos Securities Settlement Company, LLC has received full registration from the U.S. Securities and Exchange Commission to provide clearing and settlement services. The approval positions the Paxos subsidiary alongside legacy post-trade frameworks such as the Depository Trust & Clearing Corporation.

Paxos said the designation allows its subsidiary to bundle regulated stock clearing with existing white-label infrastructure tools used by PayPal and Mastercard. The SEC first granted Paxos no-action relief in 2019, which later supported a live settlement pilot in February 2020.

With blockchain as the clearing rail, the subsidiary can settle eligible securities on a same-day or nearly instant basis. The change eliminates the traditional settlement window and frees up locked capital for institutional participants. " — Paxos statement, May 29, 2026 (CoinDesk) Traditional equity trades execute in milliseconds, yet final settlement has historically required one business day under the T+1 standard adopted in 2024.

Paxos already holds licenses from the Office of the Comptroller of the Currency and regulators in Singapore and Europe.

The registration removes a regulatory bottleneck for Paxos’ institutional tokenization of real-world assets. Market participants can now use the platform to clear and settle digital asset trades involving traditional equities. The SEC responded to Paxos on March 11 regarding the application.