FCA Approves ClearToken’s CT Settle DvP Crypto Settlement
ClearToken has received FCA approval to launch CT Settle, a regulated crypto settlement platform using a delivery-versus-payment (DvP) model. This crypto settlement solution clears spot trades in cryptocurrencies, stablecoins and fiat currencies simultaneously, reducing settlement risk and freeing up capital. Modeled on the FX market’s CLS system, CT Settle operates under traditional financial infrastructure standards and holds authorisation as a payment institution and registered cryptoasset firm. Approval establishes a foundation for a tokenized asset clearinghouse. ClearToken plans to apply to the Bank of England’s digital securities sandbox to expand clearing and margin services. This move aligns with the UK’s broader push to integrate digital assets into mainstream finance, offering traders enhanced liquidity and counterparty certainty.
Neutral
Infrastructure developments like FCA’s approval of CT Settle strengthen market infrastructure and reduce settlement risk. This could support long-term institutional inflows, benefiting overall market stability and liquidity. However, as the news concerns settlement infrastructure rather than a specific crypto asset, it is unlikely to drive immediate price movements for any particular token. Therefore, we assess the impact as neutral.