‘First and only’: Paxos secures SEC registration as clearing and settlement agency — 2026-05-29

## Short Segments Aave Labs secures dual UK licenses, paving the way for regulated crypto payments infrastructure. Mastercard wins New York’s BitLicense, expanding its crypto payments reach. The CFTC opens the door for crypto perpetual futures contracts in the US, with Coinbase and Kalshi leading the charge. And coming up, Paxos becomes the first blockchain-native firm to secure SEC registration as a clearing and settlement agency. Aave Labs has achieved a significant milestone by securing dual UK licenses for its crypto payments infrastructure. The Financial Conduct Authority has granted Aave Labs' subsidiaries, Push Labs Limited and Push Virtual Assets Limited, registration as cryptoasset exchange providers. This approval, combined with their existing Electronic Money Institution authorization, establishes a robust framework for regulated crypto services in the UK. For Aave Labs, this development is a strategic move to bridge decentralized finance with traditional financial systems, offering zero-fee fiat on-ramps. By securing these licenses, Aave Labs positions itself to expand its services and enhance its compliance posture in one of the world's most stringent regulatory environments. This move is expected to facilitate smoother integration of crypto payments into everyday transactions, benefiting both businesses and consumers. Mastercard has secured a coveted BitLicense from the New York State Department of Financial Services, marking a significant expansion in its crypto payments strategy. This license allows Mastercard to operate digital asset activities under one of the strictest regulatory frameworks in the United States. With this approval, Mastercard aims to integrate stablecoins into traditional banking systems, enhancing its blockchain-based payments and settlement infrastructure. The move underscores Mastercard's commitment to maintaining its market dominance by expanding its digital asset footprint. As major financial firms deepen their involvement in crypto, Mastercard's BitLicense positions it to offer more secure and compliant crypto payment solutions, potentially setting a precedent for other financial institutions. The Commodity Futures Trading Commission has opened the door for crypto perpetual futures contracts in the US, a move that could reshape the trading landscape. Kalshi and Coinbase are among the first to receive approval to offer these products, marking a significant step for regulated US firms in the crypto space. Perpetual futures, known for their high leverage and lack of expiration dates, have been a staple in offshore markets but are now gaining traction domestically. This development could lead to increased competition and innovation in the US crypto market, as firms vie for a share of this lucrative segment. For traders, the introduction of perpetual futures on regulated exchanges offers new opportunities for hedging and speculation, potentially increasing market liquidity and depth. Base has launched its Azul upgrade on the mainnet, pushing Coinbase's Ethereum Layer 2 network toward full decentralization. The Azul upgrade introduces a new proof system and client stack, significantly reducing withdrawal times from seven days to just one. This enhancement is part of Base's strategy to improve network security and scalability, aligning more closely with Ethereum's ecosystem. Node operators are required to transition to the new base-reth-node and base-consensus clients, as older versions will no longer support Azul. With reported transaction bursts of up to 5,000 TPS and a 99% reduction in empty blocks, Base's upgrade promises to enhance the user experience and operational efficiency. This move is a critical step in Coinbase's efforts to decentralize its Layer 2 network, potentially setting a new standard for Ethereum-based solutions. ## Feature Story Paxos has become the first blockchain-native firm to secure SEC registration as a clearing and settlement agency, a groundbreaking development in the crypto infrastructure landscape. The U.S. Securities and Exchange Commission has granted Paxos Securities Settlement Company, a subsidiary of Paxos, this registration under Section 17A of the Securities Exchange Act of 1934. This approval allows Paxos to provide clearing and settlement services for eligible securities transactions, marking a significant milestone for blockchain technology in traditional finance. Since 2020, Paxos has been operating US equities clearing and settlement services with major global financial institutions, demonstrating improved settlement efficiency and reliability. By securing this registration, Paxos not only legitimizes its operations but also sets a precedent for other blockchain firms seeking to enter the regulated financial markets. This move could potentially accelerate the adoption of blockchain technology in clearing and settlement processes, offering faster and more secure transactions compared to traditional methods. For issuers, custodians, and payment companies, Paxos' SEC registration means access to a more efficient and transparent settlement infrastructure, potentially reducing costs and operational risks. As the first blockchain-native firm to achieve this status, Paxos is paving the way for broader institutional adoption of blockchain solutions in the financial sector. Looking ahead, the industry will be watching closely to see how Paxos leverages this regulatory approval to expand its services and influence the future of securities settlement. This development could also prompt other blockchain firms to pursue similar regulatory pathways, further integrating blockchain technology into the fabric of global financial systems.