ClearToken Gets Green Light for Digital Securities Depository in UK

ClearToken has achieved a significant milestone in the UK's digital securities market after being approved to operate a Digital Securities Depository (DSD) by the Bank of England. This approval, known as 'Gate 2', allows ClearToken CSD Limited to issue and settle tokenized versions of existing securities under the Bank's supervision.

The DSD will enable institutions to settle repo intraday on a 24/7 basis, reducing the cost of financing by allowing participants to borrow against collateral for hours rather than days. This is made possible through ClearToken CSD's model, which ensures fungibility between digital and traditional securities using the same ISINs.

The approval marks the first time a non-bank has passed Gate 2, and it paves the way for the expansion of eligible asset classes, including global public equities, private funds, and physical commodities. The UK's commitment to innovation in financial markets is evident through this development, with the Bank of England and Financial Conduct Authority providing a rigorous and proportionate process.