ClearToken has raised more than US$10 million in a funding round that will take it closer to becoming a UK-based horizontal CCP for digital assets. Should it succeed, it will be able to offer a horizontal – as opposed to vertical – solution that supports clearing and settlement across multiple venues. The firm reveals in a press release that it intends to launch its CCP services in 12 to 18 months, following approval from the Bank of England (BoE).
CCPs for the digital asset market are more commonly vertical, established as a division of a digital asset exchange, and providing clearing only for products traded on the exchange. As a horizontal CCP, ClearToken plans to be multi-custodial and to “facilitate transactions from multiple venues and OTC markets globally”, meeting “the demand for traditional financial market infrastructure in digital asset markets”.
Investors in the funding round include Nomura’s digital asset subsidiary, Laser Digital; Standard Chartered-backed Zodia Custody; digital asset firm LMAX Digital; and liquidity providers Flow Traders and GSR.
