ClearToken has received approval from the UK Financial Conduct Authority (FCA) to launch a regulated settlement system for digital assets, marking a significant step in Britain’s effort to integrate crypto into traditional financial frameworks.
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The authorization allows the London-based digital financial market infrastructure group to roll out CT Settle, a Delivery versus Payment (DvP) platform designed to bring institutional-grade infrastructure to crypto, stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term, and fiat transactions.
ClearToken Depository Limited, the company’s settlement arm, is now authorized as a Payment Institution under the UK’s Payment Services Regulations and registered as a crypto asset firm under anti-money laundering laws.
A Regulated Path for Digital Settlement
According to the company, these dual permissions enable it to operate a fully regulated DvP settlement system, where transactions are exchanged only when both payment and asset delivery occur—mirroring safeguards long used in traditional markets.
The soon-to-be-launched CT Settle platform aims to eliminate Herstatt risk and reduce the capital inefficiencies that have long plagued pre-funded crypto trading.
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Its horizontal model is agnostic to trading venues and custodians, allowing firms to settle across multiple exchanges while unlocking liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and minimizing counterparty risk.
By enabling true delivery-versus-payment settlement, CT Settle allows institutions to move capital more efficiently and securely across crypto, stablecoins, and fiat. The system also supports cross-market netting, consolidating exchange and over-the-counter (OTC) positions to simplify workflows and reduce operational burdens.
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The company said its approach has been tested with major market participants, ensuring that liquidity providers, asset managers, and custodians can integrate seamlessly with the new infrastructure.
Laying the Foundation for Broader Market Integration
The FCA’s decision reflects a broader push by UK regulators to align digital asset markets with established financial standards. The Bank of England recently began consultations on stablecoin rules expected to take effect next year, while HM Treasury continues to refine the national framework for digital assets, including custody and issuance.
The FCA license marks the first phase of ClearToken’s roadmap. Next, the company plans to establish a Central Counterparty and apply to become a Recognized Clearing House under Bank of England oversight. That stage will enable margining, risk mitigation, and broader cross-asset clearing capabilities.
