ClearToken, a London-based digital asset clearing and settlement firm, has received authorization from the Financial Conduct Authority (FCA) to operate its Delivery versus Payment (DvP) platform, known as CT Settle. The system will handle spot transactions in crypto assets, stablecoins, and fiat currencies, extending the standards of traditional financial infrastructure to digital markets.
The approval allows regulated financial institutions to settle trades in a controlled environment that mirrors the safety and operational discipline of conventional clearing systems. ClearToken said CT Settle was built to resolve one of crypto’s structural weaknesses—capital inefficiency from prefunded trades on exchanges and over-the-counter desks—by enabling true DvP settlement where cash and assets move simultaneously.
“This authorization will be a catalyst for digital assets to be adopted at scale,” said Niki Beattie, chair of ClearToken. The company said its model reduces counterparty risk, improves liquidity, and frees up capital that is currently locked in collateralized positions. The platform eliminates the need for pre-funding by settling trades net of obligations, similar to how the CLS system operates in foreign exchange.
Investor Takeaway
The FCA’s decision gives London its first fully regulated settlement layer for crypto and stablecoins, marking a shift toward treating digital assets under the same standards as traditional markets.
Building Post-Trade Infrastructure for 24/7 Markets
ClearToken’s system is backed by investors including Nomura’s Laser Digital. The company said CT Settle will form the backbone of a broader post-trade network aimed at institutional participants. It plans to introduce a central counterparty clearing house (CCP), pending Bank of England approval, and extend services to tokenized securities through the Digital Securities Sandbox initiative.
The firm is one of two crypto service providers added to the FCA register this month, alongside X Capital Group. The regulator has tightened licensing criteria in recent years, approving only a small number of companies for crypto-related activities to meet U.K. financial crime and operational resilience standards. ClearToken said the DvP framework offers round-the-clock settlement capacity and real-time risk management for institutional clients.
The system is designed for interoperability with both centralized exchanges and decentralized liquidity venues, providing a route for traditional banks and asset managers to transact in digital assets without relying on offshore intermediaries.
Part of a Wider UK Push on Digital Finance
The FCA’s authorization follows several steps by U.K. authorities to integrate crypto activity into existing financial regulation. Earlier this week, the Bank of England opened a consultation on stablecoins, with Governor Andrew Bailey indicating a more pragmatic stance after years of caution. The central bank’s proposals, combined with new Treasury guidance, would place fiat-backed tokens under supervision similar to e-money issuers.
In April, HM Treasury published a draft policy paper defining how crypto-asset issuance, custody, and trading will be brought inside the regulated perimeter. Separately, the government approved access to crypto exchange-traded notes (ETNs) for retail investors, further integrating digital assets into mainstream capital markets. Officials see the ClearToken approval as part of this shift.
The U.K. has lagged behind the United States and the European Union in establishing clear market structures for stablecoins and tokenized assets. The GENIUS Act in the U.S. and the MiCA framework in Europe have already begun to shape standards that London now seeks to match.
Investor Takeaway
With ClearToken’s FCA approval and upcoming BoE sandbox programs, the U.K. is positioning itself to close the regulatory gap with the U.S. and EU on crypto market infrastructure.
Next Steps for Institutional Adoption
CT Settle is expected to go live in early 2025, pending final integration and operational checks. Once active, it will give asset managers, brokers, and banks access to a regulated settlement system that operates under U.K. law but functions at the pace of digital markets. The firm expects the platform to play a central role in the adoption of tokenized assets and stablecoins by traditional financial institutions.
For the FCA and Bank of England, ClearToken’s model serves as a test case for whether regulated clearing and settlement can reduce systemic risk in crypto markets. If successful, it could form the foundation for broader licensing of post-trade services across the industry.