Paxos becomes the first blockchain firm approved to clear and settle traditional equities in the US, enabling same-day settlement.
The US Securities and Exchange Commission granted Paxos Securities Settlement Company full registration to clear and settle US stock trades using blockchain technology. This approval allows Paxos to operate as a central securities depository, competing with legacy systems like DTCC and enabling same-day or near-instant settlement for eligible securities.
Paxos, a stablecoin issuer, previously faced regulatory hurdles in its push for institutional tokenization of real-world assets. The SEC’s March 11 approval removes a key bottleneck, providing a regulated pathway for digital asset trades involving traditional equities. The move is expected to reduce settlement times and free up capital for institutional participants.
The decision positions Paxos alongside established post-trade frameworks, offering a more efficient alternative to traditional clearing and settlement processes. Market participants may now leverage blockchain for faster, cost-effective equity settlements in the US.