ClearToken’s settlement arm, ClearToken Depository Limited, has received authorisation from the UK Financial Conduct Authority (FCA) to launch its Delivery versus Payment (DvP) net settlement system for digital assets. The approval marks, what the company in their press release calls, a key step toward creating a regulated clearing and settlement infrastructure for digital markets.
The FCA authorisation allows ClearToken Depository to operate as an Authorised Payment Institution under the UK’s Payment Services Regulations and to act as a registered cryptoasset firm under anti-money laundering rules. Together, these permissions enable the firm to offer settlement and trade netting for cryptoassets, stablecoins, and fiat currencies.
The system, to be launched as CT Settle, is designed to address capital inefficiencies in pre-funded trading and to eliminate settlement (Herstatt) risk. Operating on a delivery-versus-payment basis, it will provide net settlement across markets and custodians and aims to support the continuous operation of digital asset markets.
A horizontal approach to post-trade
ClearToken positions CT Settle as a “horizontal” infrastructure model, independent of trading venues and custodians, and conceptually similar to CLS in the FX market. The setup allows market participants to consolidate positions across exchanges and OTC markets, reducing prefunding requirements and counterparty exposure while improving liquidity efficiency.
The authorisation forms the first phase of ClearToken’s roadmap. The next goal is to establish a central counterparty (CCP) and gain recognition as a Recognised Clearing House under the Bank of England. This would expand the offering to additional asset classes and provide cross-product margining.
ClearToken says its long-term objective is to extend its services to tokenised securities and other instruments as part of the Bank of England’s Digital Securities Sandbox initiative.
