The New Clearing House for the Digital Age
As an independent central counterparty, ClearToken will establish trusted risk management infrastructure in digital markets.
ClearToken will:
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.
Discover more about ClearToken and our mission to be a transformational solution in evolution of digital asset markets.
Read about ClearToken’s successful delivery of Proof of Concept.
Learn more about our mission and purpose.
ClearToken in the Media
Finery Markets dives into the rapid adoption by the digital assets market of some of the best practices from traditional finance and the indispensable role of centralised clearing in the space with ClearToken CEO, Benjamin Santos-Stephens.
...Market participants caution that cryptocurrencies are poorly suited to the rigours of trading, while global regulators have concerns over the monitoring of companies that hold digital assets. Traders and executives also point out that crypto is not well adapted to key market functions such as netting — which is used to offset a position in one currency or security with another, to reduce settlement risks....
...On the one hand, central clearing reduces counterparty risks. While many think digital assets always involve delivery versus payment, that’s not the case. Two years ago, crypto expert and former Morgan Stanley banker Caitlin Long predicted that Bitcoin could take down a global systemically important bank. That’s because while Bitcoin might settle in minutes, the bank payment leg does not. In traditional markets, central counterparties take on that risk....