ClearToken launches FCA-regulated digital assets settlement service

ClearToken, a digital asset clearing house that recently achieved regulatory approval from the United Kingdom’s Financial Conduct Authority, has announced the launch of its digital asset settlement solution.

The official debut of CT Settle, a platform ClearToken says will be a game-changer for the institutional digital asset trading ecosystem, comes a few weeks after the FCA approved its rollout.

It’s a step towards the bridging of today’s crypto markets and the next chapter of digital assets settlement, the platform said in an announcement.

What does CT Settle offer?

Copy link to section

ClearToken’s CT Settle brings to the market a platform that allows users access delivery-vs-payment (DvP) model and a netting process for both cryptocurrencies and fiat currencies.

The design significantly reduces capital reserve needs for participants.

What it means is that market participants can free up funds for working capital and deploy these across other trading activities.

CT Settle will allow institutions to access 24/7 instant settlement of trades, tapping into the delivery versus payment offering to reduce counterparty risk.

“The launch of CT Settle is a major milestone in building trusted, regulated market infrastructure that enables traditional institutions to participate in the digital asset market safely and efficiently,” said Benjamin Santos-Stephens, founder and chief executive officer of ClearToken.

He added:

“CT Settle reduces failed trades, simplifies settlement, reduces capital requirements, and helps institutions operate with predictable cash movements. As a UK FCA-regulated platform, CT Settle gives our clients the confidence to enter this space, knowing credit, operational, and regulatory risks are managed.”

ClearToken taps key partners

Copy link to section

According to ClearToken, the goal is to work with leading market makers and trading venues, among other industry players.

Regulation in the UK already sees the firm attract an initial group of over market participants.

CT Settle boasts several top platforms as launch partners, with more expected to join as the project gains traction and opens up for new institutional integrations.

The London-based company disclosed that its platform had already completed a first settlement cycle involving netted cryptoasset and fiat currency transactions.

Participating players included regulated institutional execution venue LMAX Digital and liquidity provider and market maker Flow Traders.

Zodia Custody and Bank Frick acted as digital custody provider and banking partner, respectively.

Notably, the transaction leveraged Nasdaq Eqlipse Clearing, a solution that offers real-time, multi-asset clearing for both traditional and digital markets.

While FCA-approved CT Settle is ClearToken’s first service, the company is eyeing a regulatory nod for CT Clear from the Bank of England.

The new service is currently in development and, once approved, will bring central counterparty clearing to users.

Per ClearToken, the quest is “to bring trust, transparency, and operational rigour to an evolving digital asset ecosystem.”

In this, the company envisions a unified ecosystem for traditional finance, with tokenisation and institutional adoption key targets.