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“Bridging the TradFi-DeFi Gap: The Future of Finance Depends on Traditional Trust and Regulation”

The New Clearing House for the Digital Age

Introducing ClearToken

As an independent central counterparty, ClearToken will establish trusted risk management infrastructure in digital markets.

ClearToken will:

equip digital markets with critical and trusted risk management infrastructure
enable widespread institutional adoption of digital assets
empower competitive, secure and efficient markets for major digital asset classes
enable successful trading and settlement of digital asset transactions 24/7

Digital Assets are Missing Essential Market Structure

No CCPs have emerged for Digital Assets. Most transactions in Digital Assets take place without any means for cash and assets to be delivered simultaneously and risk is associated with every individual transaction.

Institutions’ participation in Digital Asset markets are inhibited by prudential rules and by being subject to conduct rules and other restrictions to which their CeFi & DeFi competitors are not. This will only change if there are mechanisms to solve for risk management and guaranteed settlement of assets.

For institutional investors to gain confidence in the new asset class, collateral management, counterparty and settlement risks issues must be resolved.

ClearToken Will Provide a Critical Missing Piece

CCPs have enabled significant growth of markets by facilitating trading, providing the means for financing, collateral management, ensuring delivery of assets. This is a model that is sustainable and required in Digital Assets.

CCPs mutualize risk across market participants and provide a means for cash, assets and derivative obligations to change hands simultaneously, guaranteeing settlement for both parties.

ClearToken will provide a solution to the one of the biggest challenges to the institutional uptake of digital asset trading.

ClearToken in the Media

ClearToken is proud to announce its admission into the Bank of England’s Digital Securities Sandbox (DSS) as a Sandbox Entrant, as it seeks to ultimately operate as a Digital Securities Depository (DSD) for digital securities.

ClearToken proudly participated in the FIA Expo 2024, one of the derivatives industry’s foremost global events and was honoured to be among 10 fintech startups selected for the 10th FIA Innovators Pavilion, reinforcing our role in delivering transformative solutions for digital assets within the derivatives and futures markets. 

The first in a 3-part series, our new White Paper considers the centrality of trust to the safe evolution of digital asset markets through key historical parallels, the limitations of code, necessary regulatory developments and the transformative potential of tokenisation.