The New Clearing House for the Digital Age
As an independent central counterparty, ClearToken will establish trusted risk management infrastructure in digital markets.
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
Finery Markets, a leading liquidity and institutional crypto trading infrastructure provider, is proud to announce its participation in ClearToken’s proof of concept (PoC) project. ClearToken, an ambitious initiative to establish a global clearing house for the digital asset age, collaborated with over 60 industry stakeholders from digital assets and traditional finance to demonstrate the viability of centralized clearing for cryptocurrencies sourced from multiple platforms.
Nomura’s digital assets subsidiary has invested in ClearToken, a startup that is launching a clearinghouse for spot digital assets, as institutional investors believe confidence in the infrastructure that underpins the trading process is a key enabler for growth.