ClearToken said it received authorization from the UK’s Financial Conduct Authority (FCA) for CT Settle, a delivery-versus-payment (DvP) net settlement system for digital assets, stablecoins and fiat currencies.
The London-based market infrastructure firm is aiming to solve one of the industry’s longest-standing pain points: capital inefficiencies caused by pre-funding trades on exchanges and OTC markets, the company said on Tuesday.
CT Settle enables true DvP settlement, allowing assets and payments to move simultaneously, reducing counterparty risk and freeing up capital by eliminating the need for pre-funded collateral, the company said.
Backed by Nomura subsidiary Laser Digital among other investors, ClearToken is building a post-trade infrastructure for 24/7 digital markets. Its systems are designed to bring the risk management and legal certainty of traditional finance to crypto trading, mirroring models such as CLS in foreign currency.
In addition to CT Settle, the company plans to introduce a central counterparty clearinghouse (CCP), pending Bank of England approval, and expand its services to tokenized securities through the UK’s Digital Securities Sandbox.
The company is one of two added to the FCA’s register of licensed crypto service providers this month. X Capital Group secured approval on November 4.
