The CT Settle Workflow
Trades are compressed and netted into a single obligation per counterparty and asset. This reduces the number of movements required and minimises working capital requirements.
Once net obligations are finalised, settlement instructions are sent to participants instructing them to deliver assets (digital and fiat) to ClearToken operated accounts at designated custodians and settlement banks. Upon receipt of the assets ClearToken will instruct its custodians and settlement banks to deliver out the assets thereby completing the DvP process.
Trades are received from eligible trade sources during a settlement collection window.
At the close of the window, net obligations are calculated per participant per asset.
ClearToken nets trades and aggregates positions within participant accounts.
Participants receive consolidated settlement instructions.
Participants deliver assets to ClearToken’s designated settlement accounts (digital and fiat).
Once funds are confirmed, ClearToken executes exchange simultaneously to complete settlement.
Settlement Cycles
ClearToken operates on a cycle-based settlement model. Trades are accepted for settlement seven days a week, with the objective of operating hourly settlement cycles, subject to the operational readiness of CT Settle participants.
If a trade cannot be settled in the current cycle (e.g. due to insufficient funds or assets), it is rolled forward into the next cycle. ClearToken’s rule book ensures that participants are incentivised to meet their contractual obligations through market agreed settlement discipline mechanisms.
This cycle-based model supports multiple settlement windows per day, enabling participants to crystallise obligations and settle flexibly across time zones and liquidity events.
Through rolling intraday settlement cycles, ClearToken Participants will benefit from both T+0 velocity and the ability to net settlement obligations across all participating venues, enhancing operational efficiency and capital usage.
Custody and Infrastructure
ClearToken operates a multi-custodian model, working with regulated digital asset custodians and banks. Key features include:
- AML screening at the point of asset transfer
- Whitelisted wallets and accounts for instruction security
- Maker-checker controls and GUI/API interfaces for operational integrity
Settlement instructions are executed via REST APIs or GUI fallback, with real-time balance checks across ClearToken operated accounts and wallets.
Contact
Connect with our Partnership team to learn more about CT Settle and the benefits of netting and DvP settlement.
This service is provided by ClearToken Depository Limited, which is authorised by the Financial Conduct Authority (Firm Reference Number 1016940 and Firm Reference Number 1017352).
