In this paper, we propose a compact, distributed, static synchronous compensator that is supported by a solid-state transformer (SST) topology used in custom power devices (CPD) and their applications. A suitable operating frequency around 20 kHz is proposed for the high-frequency distributed static compensator (HFDSC). This new design consists of a three-level dual active bridge SST configuration and a suitable transformer ferrite core that is used to enhance performance characteristics. Furthermore, the proposed HFDSC can be used in high-power transmission-line systems in order to ensure voltage stability and system reliability. A high-frequency, transformer-based distributed static synchronous compensator (D-STATCOM) was developed for the first time. The dc capacitor reference voltages are realized using a hysteresis voltage controller by adopting a proportional-integral (PI) techniques. The reference values of the PI controller are computed in such a way as to control the power flow from the instantaneous reference frame theory, even when 3-phase symmetry is lost. MATLAB simulation results demonstrate the efficacy of the proposed design.