Quick take:
- ClearToken is working to get full regulation to run a crypto clearing house service in the UK.
- The company aims to become a central counterparty (CCP) for clearing digital asset trades across multiple venues.
- ClearToken plans to launch its solution in the next 12-18 months after receiving approval from the UK FCA and the Bank of England.
Digital asset clearing house ClearToken has completed a $10 million seed round backed by Nomura’s digital asset unit Laser Digital, Standard Chartered Bank’s Zodia Custody, liquidity providers including Flow Traders and GSR, and digital asset company LMAX Digital.
The company is looking to launch its service in the UK within 12-18 months after receiving approval from the Financial Conduct Authority (FCA) and the Bank of England. ClearToken wants to become a central counterparty (CCP) for clearing digital asset trades across multiple venues.
The company wants to make it easy for institutions to engage with tokenisation and cryptocurrencies.
According to a statement in the ClearToken whitepaper, the company is introducing a “horizontal” structure for clearing houses, which is connected across multiple trading venues, as opposed to “vertical”, which serves just one venue in a silo.
“Horizontal models enable participants to trade across multiple venues and provide mechanisms to streamline their clearing and settlement activities in a single place, bringing operational and cost benefits and encouraging wider access to multiple pools of liquidity,” the whitepaper reads.
CEO Benjamin Santos-Stephens commended the UK government’s progressive approach to crypto, which the seed investors recognise.
“Our investors have recognised that the U.K. government’s progressive legislative program to recognise and regulate digital assets enabling their safe adoption, combined with the U.K.’s existing position as a global leader in clearing services for securities markets, makes the U.K. the ideal jurisdiction to host the first digital asset clearing house,” he said.
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