ClearToken Gets Green Light for Live Transactions in UK's Digital Securities Sandbox

ClearToken has secured approval from the Bank of England to conduct live transactions in the UK's Digital Securities Sandbox. The startup is now the second firm, and first non-bank, to receive Gate 2 approval for issuing and settling tokenized securities under supervision.

The depository will initially support FTSE 350 equities, GBP government debt, and corporate bonds. ClearToken plans to expand its offerings to global public equities, private funds, physical commodities, and digital assets pending further approval.

This approval gives ClearToken a broader scope than HSBC, which received the first Gate 2 approval in July for digitally native bond issuance. ClearToken's support for 24/7 settlement enables intraday repo, allowing borrowing against collateral for hours rather than days.