ClearToken secures FCA nod for digital asset settlement

By Vriti Gothi

ClearToken has received authorisation from the UK Financial Conduct Authority (FCA) to launch its Delivery versus Payment (DvP) net settlement system. The approval marks the next phase in ClearToken’s mission to establish the world’s first horizontal clearing and settlement infrastructure for digital assets, enabling a trusted foundation for institutional participation in the evolving digital economy.

Authorised as an Authorised Payment Institution under the Payment Services Regulations 2017 and registered as a cryptoasset firm under the Money Laundering Regulations 2017, ClearToken can now deliver regulated settlement and trade netting for digital assets, stablecoins, and fiat currencies. Its soon-to-be-launched platform, CT Settle, will offer post-trade DvP net settlement on an unmargined basis, designed to eliminate settlement risk and reduce the capital inefficiencies inherent in pre-funded trading environments.

CT Settle operates as a horizontal model, independent of trading venues and custodians, similar in concept to CLS in the foreign exchange market. By removing pre-funding requirements, it unlocks liquidity, reduces counterparty exposure, and introduces true delivery-versus-payment settlement across crypto, stablecoin, and fiat markets. Built on a cloud-native infrastructure that supports 24/7 operations, the system streamlines workflows, centralises instruction management, and enhances operational resilience for institutions engaging in digital asset trading.

Benjamin Santos-Stephens, CEO of ClearToken, said,  “This authorisation is a seminal moment, not just for ClearToken, but also for institutional participation as it provides a clear and realistic roadmap for growing the digital asset economy. The launch of CT Settle directly addresses the credit risks and capital inefficiencies that have constrained institutional digital markets and establishes a solid, regulated foundation for tokenisation.”

Niki Beattie, Chair of ClearToken, added,  “This is the catalyst that will allow digital assets to be adopted at scale. The governance, credibility, and operational resilience that come with being a regulated UK institution will enable institutional capital to engage confidently in these markets.”

The authorisation represents the first phase of ClearToken’s roadmap, with future plans including recognition by the Bank of England as a clearing house and expansion into tokenised securities, advancing the UK’s role in shaping global digital financial infrastructure.