ClearToken said it has received authorization from the UK’s Financial Conduct Authority (FCA) for CT Settle, a net delivery versus payment (DvP) settlement system for digital assets, stablecoins and fiat currencies.
The London-based market infrastructure company aims to solve one of the industry’s oldest problems: capital inefficiency caused by pre-funding transactions on exchanges and over-the-counter markets, the company announced Tuesday.
CT Settle enables true DvP settlement, allowing assets and payments to flow 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 the risk management and legal certainty of traditional finance to crypto trading, mirroring models like 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 expand its services to tokenized securities via the UK’s Digital Securities Sandbox.
The company is one of two companies added to the FCA’s register of authorized crypto service providers this month. X Capital Group obtained approval on November 4.
