Paxos Becomes First Blockchain-Native Clearing Agency Approved by US SEC

Paxos has made history by becoming the first blockchain-native clearing agency to be approved by the US Securities and Exchange Commission (SEC). This registration is a significant milestone for the company, which can now operate as a clearing agency for securities. Paxos' infrastructure uses distributed ledger technology to record ownership transfers in near real-time, making it a more efficient and cost-effective option than traditional clearing processes.

The SEC's approval of Paxos follows a seven-year regulatory engagement process, during which the company demonstrated its ability to settle real securities on-chain without compromising security or stability. The timeline highlights the shift in the SEC's posture towards blockchain-based companies, which are now being treated as equals rather than outsiders.