ClearToken's FCA-Authorized Platform Seeks to Bridge Traditional Finance and Decentralized Finance Sectors

ClearToken, a digital financial market infrastructure company based in London, has received approval from the U.K. Financial Conduct Authority (FCA) to introduce CT Settle—a delivery-versus-payment (DvP) settlement platform for cryptoassets, stablecoins, and fiat currencies, according to a report by

. This achievement represents a significant advancement in tackling the capital inefficiencies and counterparty risks that have historically challenged institutional digital asset trading. The platform removes the requirement for pre-funded collateral, allowing assets and payments to be exchanged at the same time, which in turn releases liquidity for participants, as detailed in a report.

CT Settle is modeled after established financial systems like the CLS Bank's foreign exchange structure, creating a regulated clearing and settlement layer for digital assets, Coindesk reported. The system is "unmargined," making it possible to net positions across multiple exchanges and over-the-counter (OTC) trades. This structure lessens the workload for treasury and operations teams and centralizes instruction management across custodians, according to Finextra.

ClearToken's CEO, Benjamin Santos-Stephens, pointed out that the offering directly addresses credit exposure and capital limitations that have slowed institutional involvement in crypto markets, as outlined in an article.

With FCA authorization, ClearToken is positioned as a major contributor to developing a "horizontal" market infrastructure that is neutral regarding trading venues and custodians, Finextra noted. Supported by investors such as Nomura's Laser Digital, the firm plans to broaden its reach to tokenized securities through the U.K.'s Digital Securities Sandbox and to launch a central counterparty clearing house (CCP), pending approval from the Bank of England, as reported by Coindesk. Niki Beattie, chair of ClearToken, stated that the regulatory approval delivers the governance and operational strength required to draw institutional investment, aligning with the U.K.'s ambition to become a global leader in digital asset innovation, as mentioned in Assetservicing Times.

This milestone coincides with stricter regulatory measures for crypto businesses in the U.K., with ClearToken and X Capital Group being the two most recent firms added to the FCA's register this month, according to Coindesk. The company’s cloud-based system is built to support round-the-clock digital markets, providing legal clarity similar to traditional financial market infrastructures (FMIs). By separating trade execution from custody, CT Settle allows institutions to independently select execution platforms and custodians, a crucial capability for scaling tokenized asset trading, as highlighted by Finextra.

ClearToken’s future plans involve extending its post-trade offerings to include securities and derivatives, pending central bank approval. The company’s staged strategy—beginning with DvP settlement, moving to CCP, and ultimately offering tokenized asset services—demonstrates a deliberate effort to integrate traditional finance (TradFi) with decentralized finance (DeFi), as reported by Finextra. As the digital asset sector grapples with governance and risk management issues, ClearToken’s regulated approach may provide a model for broader adoption, helping to bridge the divide between innovation and institutional confidence.