ClearToken Gains Approval for Digital Securities Depository in UK

ClearToken has been accepted into the Bank of England's Digital Securities Sandbox (DSS) to run a Digital Securities Depository (DSD). This move will enable ClearToken CSD to offer tokenized versions of existing securities, including debt and equity. The platform's cloud-native settlement system is said to be the first of its kind.

One of the key benefits of this new system is that it allows for 24/7 collateralization and settlement, reducing financing costs for institutions. At launch, ClearToken CSD will support FTSE 350 equities, GBP government debt, and GBP and non-GBP corporate bonds, which can be used as collateral.

Ben Santos-Stephens, CEO of ClearToken Group, emphasized the significance of this approval in enabling real-world adoption of digital securities. He stated that the missing piece in tokenization was not asset issuance but rather the market infrastructure behind it, specifically settlement, collateral mobility, and payments.