ClearToken Secures Bank of England Approval for Digital Securities Depository
ClearToken has secured approval from the Bank of England to operate a Digital Securities Depository (DSD) in the Digital Securities Sandbox, allowing it to issue and settle tokenised versions of existing securities. This 'Gate 2' approval enables ClearToken CSD to operate under certain limits, with institutions able to have confidence that digital securities can be settled within a regulated post-trade framework.
The company's CEO, Ben Santos-Stephens, highlighted the significance of this approval, stating that it addresses one of the key bottlenecks in institutional adoption of tokenisation - the infrastructure around the technology. ClearToken CSD will enable continuous 24/7 settlement for tokenised equities and bonds, alongside intraday repo functionality.
The initial live operations will cover FTSE 350 equities, UK sovereign debt, and corporate bonds, governed by specific limits set by the Bank of England. Subject to further approval, ClearToken CSD intends to expand eligibility in phases to additional asset classes including global public equities, private funds, and physical commodities such as gold.