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Dear {{{Recipient.FirstName}}},
We are delighted to share the news that ClearToken CSD has been approved by the Bank of England to pass Gate 2 in the Digital Securities Sandbox, granting us authorisation to operate as a live Digital Securities Depository.
I am once again, beyond proud of this achievement, and our thanks go to the fantastic team we have built here at ClearToken, who worked tirelessly to make this a reality. This milestone follows the regulatory progress made by various parts of the ClearToken group of companies: the Central Counterparty application we completed and submitted to the Bank of England last week, as well as our prior Financial Conduct Authority authorisation, gained towards the end of last year.
Together, these developments establish a comprehensive, regulated post-trade framework for digital assets under English legislation.
Passing Gate 2 enables ClearToken to deliver several key market firsts:
- The world's first tokenised international central securities depository operating within a live, regulated perimeter.
- The first infrastructure to achieve statutory settlement finality where the issued ISIN remains identical to the underlying security.
- The first group to hold regulatory permissions to settle both tokenised cash and tokenised securities under one roof.
- Continuous 24/7 settlement capability for collateral instruments, initially supporting UK Gilts, corporate bonds, and public equities.
We are immensely grateful to the Bank of England, the Financial Conduct Authority, and the UK Government for establishing the regulatory and legislative sandbox frameworks that allow this level of market innovation. Together their work, vision and support are truly embedding the UK as the global financial centre for a new era in global finance, as they balance their roles in providing protections for market participants, as well as encouraging innovations of this kind.
With two key live regulatory permissions now in place, we are now inviting market participants such as investment banks and trading venues to join our active working groups to help construct the rules for continuous 24/7 post-trade settlement, as we continue to build a financial market infrastructure fit for the 21st Century.
Please see our press release as well as a blog post from me, adding a little more detail about this latest milestone, why these developments are so important, and some of the use cases that our innovations will now allow for traditional financial institutions, to finally realise the massive potential of tokenisation and digital assets more broadly.
Next up for us, we look forward to engaging with the market in our working groups and we await the Bank of England’s decision on our authorisation to operate as a CCP, which we expect in due course.
We look forward to keeping you updated on our progress.
Once again, I would like to thank the tenacious team at ClearToken for their commitment and diligence in helping to make all this possible.
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