>> Read Our White Paper – “Creating Financial Market Infrastructure for Digital Assets: Securing Tokenised and Cryptoasset Trading”

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:

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

...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....

"Creating Financial Market Infrastructure for Digital Assets: Securing Cryptocurrency and Digital Asset Trading" explores the key benefits of centralised clearing and why it matters for the future of institutional participation in digital assets.