ClearToken has received approval from the UK Financial
Conduct Authority (FCA) to launch a regulated settlement system for digital
assets, marking a significant step in Britain’s effort to integrate crypto into
traditional financial frameworks.
Digital assets meet tradfi in London at the fmls25
The authorization allows the London-based digital
financial market infrastructure group to roll out CT Settle, a Delivery versus
Payment (DvP) platform designed to bring institutional-grade infrastructure to
crypto, stablecoin, and fiat transactions.
ClearToken Depository Limited, the company’s
settlement arm, is now authorized as a Payment Institution under the UK’s
Payment Services Regulations and registered as a crypto asset firm under
anti-money laundering laws.
A Regulated Path for Digital Settlement
These dual permissions enable it to operate a fully
regulated DvP settlement system, where transactions are exchanged only when
both payment and asset delivery occur—mirroring safeguards long used in
traditional markets.
The soon-to-be-launched CT Settle platform aims to
eliminate Herstatt risk and reduce the capital inefficiencies that have long
plagued pre-funded crypto trading.
Its horizontal model is agnostic to trading venues and
custodians, allowing firms to settle across multiple exchanges while unlocking
liquidity and minimizing counterparty risk.
By enabling true delivery-versus-payment settlement,
CT Settle allows institutions to move capital more efficiently and securely
across crypto, stablecoins, and fiat. The system also supports cross-market
netting, consolidating exchange and over-the-counter (OTC) positions to
simplify workflows and reduce operational burdens.
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The company said its approach has been rigorously
tested with major market participants, ensuring that liquidity providers, asset
managers, and custodians can integrate seamlessly with the new infrastructure.
Laying the Foundation for Broader Market Integration
The FCA’s decision reflects a broader push by UK
regulators to align digital asset markets with established financial standards.
The Bank of England recently began consultations on stablecoin rules expected
to take effect next year, while HM Treasury continues to refine the national
framework for digital assets, including custody and issuance.
Beattie added that the approval supports the UK’s
long-term goal of becoming a hub for trusted digital financial infrastructure—a
sentiment echoed by policymakers seeking to keep pace with the U.S. and EU in
stablecoin regulation and tokenized finance.
The FCA license marks the first phase of ClearToken’s
roadmap. Next, the company plans to establish a Central Counterparty (CCP) and
apply to become a Recognized Clearing House under Bank of England oversight.
That stage will enable margining, risk mitigation, and broader cross-asset
clearing capabilities.
This article was written by Jared Kirui at www.financemagnates.com.
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