Proof of Concept

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Building For The Future of Markets, With The Market

ClearToken is an ambitious project to develop, build and launch a much-needed global clearing house for the digital asset age.

To achieve this, ClearToken requires industry support, superior operational processes and regulatory approval. We are actively engaging with market stakeholders to ensure that ClearToken can rigorously and successfully meet the needs of the market as it develops.

ClearToken is pleased to announce that the PoC was completed on schedule in September 2023. Continue reading to learn more about what ClearToken has achieved.

Our Objective:

ClearToken worked with over 60 stakeholders to demonstrate the viability centralized clearing of cryptocurrency from trades sourced across multiple platforms. While limited in instruments, scope and members, the aim was to show that the core tenets of a best-in-class, fully regulated, CCP-cleared trading lifecycle and value proposition is viable and scalable.

Our Goals:
Goal 1Demonstrate that core market infrastructure principles from mature capital markets bring value and stability to digital assets by serving the needs of institutions which cannot currently participate.
Goal 2Demonstrate that a CCP will reduce systemic and counterparty risks for members with complex exposures – OTC, across multiple venues and instrument types.
Goal 3Demonstrate that the risk of digital asset transfers and trading can be lowered by removing the requirement for pre-payments, simultaneously improving capital efficiency by collateralizing positions with margin held by a CCP.

Next Steps

ClearToken will reporting on lessons learned from the PoC to regulators and stakeholders as part of its authorisation process.

The team remains focused on the following core areas through their next stage of development.

  • Industry Partnerships:
    Working with 60+ industry leading exchanges, banks, brokers, market makers, custodians & software providers:
    Exchanges & Venues​
    15+ global venues
    ​
    Banks​ & Prime Brokers​
    20+ banks, brokers & prime brokers
    Market Makers
    10+ global leaders
    Validation from market participants who point to clearing and settlement, alongside regulation, as the primary issues inhibiting the development digital asset markets:
    Custodians
    5+ US & EU inc. regulated​
    Asset Managers​
    10+ household names​
    Software Vendors​
    5+ industry leaders
  • Platform Development:
    Partnering with industry-leading infrastructure providers to develop the pre-eminent clearing solution for digital assets, including 24/7 trading and settlement support.
  • Rulebook Development:
    We’re engaging broadly with stakeholders and with industry experts to deliver a robust CCP rulebook.
  • Regulatory Engagement:
    We aim to capitalize on the UK’s strong legal foundations and leadership in financial markets.

Visit the website regularly to keep up to date with ClearToken’s progress.