ClearToken said it has received clearance 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 aims to solve one of the industry’s oldest problems: capital inefficiency 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 post-trade infrastructure for 24/7 digital markets. Its systems are designed to bring risk management and legal certainty from traditional finance to cryptocurrency trading, mirroring models such as CLS in foreign exchange.
Beyond CT Settle, the company plans to introduce a central counterparty clearing house (CCP), pending approval from the Bank of England, and extend 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 obtained approval on November 4.
