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- ClearToken receives FCA approval for its crypto settlement platform.
- CT Settle aims to streamline digital asset settlement processes.
- UK continues pushing for stronger crypto regulations and innovation.
The UK’s Financial Conduct Authority (FCA) has granted ClearToken approval to launch a regulated digital asset settlement service. This move marks a significant step in the UK’s ongoing efforts to modernize its cryptocurrency infrastructure.
The next platform of Clear Token is CT Settle, which will enable institutions to trade on cryptocurrencies, stablecoins, and fiat currencies based on a delivery-versus-payment (DvP) model. This mechanism ensures that both legs of a trade are fulfilled simultaneously, reducing settlement risks and enhancing the overall effectiveness of the process.
Also Read: Monad to Launch MON Token via Coinbase’s New Platform
Aiming to Streamline Digital Asset Settlements
The CT Settle platform is inspired by the CLS system applied to the foreign exchange markets, which is characterized by the ability to handle vast amounts of currency settlement. ClearToken’s platform aims to replicate this model in the digital asset world, addressing common issues such as counterparty risk and liquidity management.
By eliminating the need for pre-funded trading accounts, the platform frees up capital, offering a more flexible and secure way for institutions to manage digital asset transactions.
Having received approval from the FCA, ClearToken has established itself as an Approved Payment Institution and a registered cryptoasset firm. This is a significant milestone for the company, laying the groundwork for potential future expansion into clearing and margining services. Another declaration made by ClearToken is its intention to request further permission from the Bank of England to enter the central bank’s Digital Securities Sandbox.
UK’s Continued Push for Stronger Crypto Regulations
The FCA’s approval of ClearToken is part of the UK’s broader strategy to enhance its regulation of digital assets. This comes on the back of increasing anxieties among the players in the industry, who have been complaining of the slow pace of regulatory development in the UK.
Nevertheless, the UK is evidently taking the proper steps to become a more competitive participant in the global cryptocurrency market, with recent measures to regulate stablecoins and expand the retail availability of Bitcoin and Ether ETFs.
IG Group, an investment firm, has estimated a 20 percent growth of the UK crypto market in the coming year due to these new regulated products and the rising number of digital assets infrastructure.
Also Read: Bank of England Launches Consultation on Regulating Sterling Stablecoins and Digital Pound
