Paxos Securities Settlement Company has received regulatory approval to provide clearing and settlement services for U.S. stocks on a blockchain.
The U.S. Securities and Exchange Commission (SEC) has authorized stablecoin issuer Paxos to become the first blockchain firm authorized to operate as a central securities depository for traditional stocks.
The approval clears the way for Paxos to begin the tokenization of real-world assets such as stocks and exchange-traded funds.
Going forward, Paxos will be able to clear and settle digital asset trades involving traditional stocks. The move comes as Wall Street moves closer to tokenized equities.
Tokenized stocks are digital assets on a blockchain that track the price of traditional shares. They are designed to provide greater speed and flexibility and could trade around the clock.
Paxos said its new registered status enables it to bypass legacy settlement infrastructure. The company can now settle eligible securities on a same-day or nearly instant basis.
In traditional capital markets, stock trades execute in milliseconds.
However, final settlement, the actual exchange of cash for legal asset ownership, is processed through a centralized clearing house and can a day or longer to finalize.
Paxos is privately held and its stock doesn't trade on a public exchange.
COMTEX_482410615/2797/2026-05-29T11:42:35