A New Clearing House for the Digital Age
No CCPs have emerged for digital assets.
CCPs in traditional finance have struggled to evolve beyond their mandates as guardians of stability for national securities & derivatives markets. No other market participants have emerged to fill this gap for the digital asset market and its participants at large.
ClearToken is being built to be a CCP for the digital markets, offering the benefits of traditional market structure concepts of centralised clearing and settlement for emerging digital assets.
We will facilitate credit intermediation, cross-product netting and the extension of margin financing. ClearToken will also mutualize and manage risk, creating a flywheel for growth through guaranteed settlement & capital efficiency powered by horizontal multi-market clearing and asset collateralization services.
Our services will enable institutional participants to access new markets with increased confidence, oversight and risk mitigation.
ClearToken is a Transformational Solution for the Institutional Adoption of Digital Asset Markets
The ethos behind the evolution of distributed ledger technology (DLT) is largely to democratise and free financial markets and asset management from government control, intervention and regulation.
However, the fast-paced evolution of digital markets has largely left regulatory oversight and participants embedded in traditional finance market structure unable to keep up.
This has created challenges, not just opportunities.
Some observers see the divergence of financial markets from regulatory oversight and intervention as a positive change. However, the reality is a market vulnerable to its own immaturity through poor practices, the sophistication of bad actors and excessive deference to the technology itself.
Innovative technology alone cannot support a market and all its functions.
In particular, the absence of centralised clearing, settlement and custody services denies the well-established risk management benefits to this innovative, but comparatively untested, new asset class.
With regulatory obligations to meet, institutional investors around the world cannot participate freely without consideration to the risks that digital markets can currently pose.
Horizontal CCPs Encourage Wide Market Participation
ClearToken is building a horizontal clearing house to account for today’s digital asset ecosystem. By integrating with multiple digital asset trading sources, ClearToken’s model elegantly combines tried and tested clearing and settlement approaches seen in traditional markets into the digital asset lifecycle. Our commitment to supporting multiple trading sources, digital asset custodians, and settlement banks, is designed to give choice and flexibility to incumbents and new entrants to digital assets.
Integrity is at the Heart of Our Mission
As a clearing house for digital assets, ClearToken’s mission is a logical and necessary development to bring the benefits of traditional finance centralised clearing, settlement and custody services to the digital markets.
Being regulated across all markets that we operate in is central to our ambition. ClearToken intends to be authorised and regulated in every jurisdiction in which it operates and maintain strict codes of conduct. Membership will only be permitted to the highest quality participants that meet strict requirements to best ensure market stability.
ClearToken has successfully completed the Proof of Concept, evidencing that traditional risk management can be applied to meet the requirements of digital markets, and working with over 60 leading market participants to do so.
Follow our updates at our dedicated POC page.