ClearToken, a burgeoning cryptocurrency clearing house, has successfully secured a $10 million seed investment from a group of institutional investors, including Nomura’s digital asset arm, Laser Digital. This strategic funding round also saw contributions from liquidity providers such as Flow Traders and GSR, as well as digital asset firms LMAX Digital and Zodia Custody.
Aiming for Regulatory Approval
With ambitions to be fully regulated within the UK, ClearToken is actively pursuing approval from the Bank of England. The company’s goal is to provide a robust platform for horizontal clearing and settlement of digital assets, distinguishing itself by offering services across multiple trading venues rather than operating in a siloed, vertical manner. This approach is anticipated to streamline operations, reduce costs, and broaden access to diverse liquidity pools for market participants.
The Vision for Horizontal Clearing
ClearToken emphasizes the advantages of a horizontal clearing house model, which allows for more efficient trading and settlement processes by enabling participants to engage with multiple trading venues through a single platform. This model is designed to bring operational efficiencies and cost savings while facilitating greater access to a variety of liquidity sources.
Plans for Service Expansion
The company has outlined plans to launch preliminary settlement services within the UK this year, subject to regulatory nods. Additionally, ClearToken aims to introduce central counterparty clearing (CCP) services within the next 12 to 18 months. This development comes at a time when the UK government is actively working on progressive legislation to recognize and regulate digital assets, thereby promoting their safe adoption.
Strategic Positioning in the UK
CEO Benjamin Santos-Stephens highlighted the UK’s leading role in the global securities markets’ clearing services, which, coupled with the government’s forward-thinking legislative approach to digital assets, positions the UK as an ideal location for pioneering a digital asset clearing house. ClearToken’s initiative is set against a backdrop of growing interest and investment in digital assets, aiming to offer a regulated, secure, and efficient clearing and settlement solution for the burgeoning cryptocurrency market.
