Regulatory Milestone
On Nov. 11, 2025, ClearToken announced that it has received formal authorization from the U.K. Financial Conduct Authority to operate CT Settle, its delivery-versus-payment (DvP) digital asset settlement system. This approval marks a milestone in industry efforts to establish regulated clearing and settlement infrastructure for cryptocurrencies and stablecoins, aligning the digital asset industry with standards long applied to traditional financial markets.
Platform Features
CT Settle is designed to allow simultaneous exchange of digital assets and corresponding fiat or stablecoin payments, eliminating the need for pre-funding escrow accounts. By mirroring the functionality of established systems such as the Continuous Linked Settlement (CLS) used in foreign exchange markets, CT Settle aims to reduce counterparty risk and enhance liquidity efficiency for institutional participants.
Operational Impact
- Liquidity Preservation: Institutions can redeploy capital immediately rather than tying up funds in advance, improving capital efficiency.
- Risk Management: The delivery-versus-payment model minimizes settlement risk by ensuring asset and payment transfer finality occur in lockstep.
- Market Access: Authorized participants will include regulated custodians, exchanges and OTC desks, subject to ongoing FCA compliance requirements.
Industry Implications
ClearToken’s success in navigating U.K. regulatory scrutiny sets a precedent for other clearing and settlement initiatives. It signals that regulators are willing to integrate digital asset operations within existing frameworks, provided firms satisfy robust governance, security and capital controls. Market observers expect this approval to accelerate similar licensing efforts across Europe under the Markets in Crypto-Assets (MiCA) regime.
Future Developments
Looking ahead, ClearToken plans to extend CT Settle’s capabilities to support a wider range of tokenized assets, including tokenized securities and commodity-backed tokens. The firm has also indicated plans to collaborate with central securities depositories and central banks exploring digital currencies, seeking to leverage DvP mechanics for cross-border liquidity optimization.
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