ClearToken has been accepted into the Bank of England Digital Securities Sandbox (DSS) to run a Digital Securities Depository (DSD). ClearToken CSD will be able to offer a tokenized version of existing securities under the program. This includes:
- Tokenized securities including debt and equity
- A cloud native settlement, said to be the first
- A bridge to 24.7 tokenized securities
- 24/7 collateral
- and more
The ability to settle repo intraday is said to let institutions no longer rely on batch processes and end-of-day cut-offs. With settlement available throughout the day, participants can borrow against collateral for hours rather than days, reducing financing costs.
At launch, ClearToken CSD’s live settlement services are expected to support FTSE 350 equities, GBP government debt, and GBP and non-GBP corporate bonds, all of which can be used as collateral.
Going forward, ClearToken says it will expand eligibility to other assets, including private funds, commodities, and digital assets.
Ben Santos-Stephens, CEO of ClearToken Group, says the approval is significant for the market as the biggest hurdle for digital securities adoption is whether the infrastructure is sufficient and compliant.
“The missing piece in tokenisation was never asset issuance, it was the market infrastructure behind it. Settlement, collateral mobility, and payments are the pillars that enable real-world adoption. Today, ClearToken is uniquely positioned, holding UK permissions for all three, with the cash leg already authorized, helping bridge the gap between digital innovation and regulated financial markets,” said Santos-Stephens.
ClearToken Depository Limited is an Authorized Payment Institution regulated by the FCA and a registered cryptoasset firm, settling fiat, stablecoins and cryptoassets; ClearToken CSD Limited has passed Gate 2 and will operate as a Digital Securities Depository; and ClearToken CCP Limited has submitted its application to the Bank of England for authorization as a central counterparty.
