ClearToken, a London-based clearing house specializing in global digital assets, has adopted Nasdaq’s Eqlipse Clearing technology.
Following its recent acquisition of FCA authorization, ClearToken is set to launch its innovative digital settlement service, CT Settle. This service will support delivery-vs-payment (DvP) and netting for both digital assets and fiat currencies, including cryptocurrencies and stablecoins.
The startup highlights that the current digital asset market predominantly relies on bilateral trading conducted on a gross, unnetted basis. This process obligates participants and market makers to pre-fund their trades, which means they must provide the entire amount being traded with counterparties before executing transactions.
ClearToken is also working towards establishing a comprehensive central counterparty clearing house specifically for digital assets. This new clearing house will connect various trading venues, custodians, and settlement systems, rather than being limited to a single exchange or trading platform. By enabling participants to interface with a central counterparty instead of directly with each other, ClearToken aims to streamline transactions and mitigate risks throughout the ecosystem. The clearing house will operate 24/7, catering to the continuous nature of digital asset markets while providing real-time risk management through margin and default fund contributions.
Steve Briscoe, Chief Investment Officer of ClearToken, remarked, “Nasdaq’s clearing technology has enabled us to create a resilient and scalable infrastructure that is cloud-native and meets the high standards required of financial market infrastructures in traditional markets. It also addresses the unique demands of digital markets, including 24/7 processing and fractional ownership.”