ClearToken has formally applied to the Bank of England for authorisation to launch its central counterparty clearing service, CT Clear, in a move that could mark a significant milestone for digital financial market infrastructure in the UK.
The application follows a period of pre-application engagement with the Bank and initiates the regulator’s statutory assessment process under UK EMIR. If approved, ClearToken would become only the fourth CCP authorised in the UK, joining LCH, ICE Clear Europe and LME Clear, and the first new CCP to receive approval since 2014.
CT Clear has been designed to clear digital and tokenised assets, providing netting across spot and futures markets on a 24/7 basis. The service will initially support fiat currencies, cryptoassets and stablecoins, with plans to expand into tokenised traditional assets and securities over time, subject to regulatory approval.
According to ClearToken, the service aims to address a key challenge facing digital asset markets: fragmented market infrastructure.
Institutions trading across multiple venues currently face duplicated margin requirements, collateral management processes and bilateral credit exposures, creating capital inefficiencies that clearing models have historically addressed in traditional financial markets.
Unlike venue-specific solutions, CT Clear is being developed as a venue-neutral platform, allowing market participants to net exposures across multiple execution venues and over-the-counter markets.
The model is aimed at banks, prime brokers and institutional investors operating across an increasingly complex digital asset ecosystem.
The firm believes this approach will become increasingly important as tokenisation gains traction across wholesale financial markets and as trading activity continues to expand beyond traditional market hours.
Benjamin Santos-Stephens, founder and CEO of ClearToken, described the application as a major step forward for the company and the wider market.
“We’re delighted to reach this latest moment in ClearToken’s development. It is the next milestone in our strategy to bridge the gap between the digital assets market and traditional financial institutions,” he said.
Santos-Stephens added that, subject to approval, CT Clear would introduce several industry firsts, including the UK’s first CCP authorisation in more than a decade, the country’s first cloud-native clearing infrastructure and the first UK clearing service designed to operate continuously on a 24/7 basis.
“It will also be the first time digital property will be cleared under UK legislation,” he said.
Niki Beattie, chair of ClearToken, said the development highlighted the UK’s efforts to maintain its position as a leading global financial centre while supporting innovation in digital assets.
“These developments show that the UK is forging ahead to maintain its place as a global financial centre,” she said. “The Bank of England has demonstrated throughout this process how it balances its role as a regulator providing appropriate safeguards while also acting as a facilitator of UK innovation.”
Beattie also pointed to the Property (Digital Assets etc) Act 2025 as an important step in creating a legal framework for tokenised assets and digital property rights.
Looking ahead, ClearToken said the UK application forms part of a broader international strategy. The company intends to pursue authorisation as a derivatives clearing organisation with the US Commodity Futures Trading Commission, alongside regulatory recognition in the European Union and Abu Dhabi Global Market.
