Institutional players back digital asset clearing house ClearToken
finextra.comClearToken intends to be fully regulated in the UK and has initiated the process of obtaining clearing house recognition from the Bank of England, with the intention of launching CCP services in 12-18 months. During 2024, ClearToken intends to launch preliminary settlement services, subject to the receipt of required approvals from the Financial Conduct Authority and Bank of England.
Benjamin Santos-Stephens, CEO of ClearToken comments: “ClearToken has attracted inward investment from firms across the US, EU, and Asia.
Our investors have recognised that the UK government’s progressive legislative programme to recognise and regulate digital assets enabling their safe adoption, combined with the UK’s existing position as a global leader in clearing services for securities markets, makes the UK the ideal jurisdiction to host the first digital asset Clearing House.”
ClearToken's infrastructure will aim to mitigate bilateral counterparty risk for settlement, financing, and derivative transactions by centralising clearing, collateral, and risk management arrangements. The company will operate 24/7, facilitating transactions from multiple venues and OTC markets globally, while managing risk in real-time through margin and default fund contributions.
Julian Sawyer, CEO of Zodia Custody, comments: "The future viability of the digital asset ecosystem will only come from close collaboration between infrastructure providers.
Effective clearing is a significant piece of the overall puzzle — which is where ClearToken steps in. Zodia Custody’s investment here is a bet on the institutional future of digital assets, and the ability of the ecosystem to deliver the infrastructure, without compromise.”
The venture is being incubated by
