ClearToken Wins Bank of England Approval in UK Digital Securities Sandbox

ClearToken has become the first non-bank to pass the Gate 2 stage of the UK's Digital Securities Sandbox, receiving approval from the Bank of England to operate a live Digital Securities Depository. This allows ClearToken CSD to issue and settle tokenized versions of existing securities within limits set by the central bank.

The initial service will cover FTSE 350 equities, GBP government debt, and GBP and non-GBP corporate bonds. The model is designed for continuous settlement rather than batch processes, enabling eligible securities to be mobilized as collateral and used in intraday repo transactions on a 24/7 basis.

The approval also gives ClearToken permission to handle tokenized equities and corporate bonds, as well as sovereign debt, which it described as a first for an approved Digital Securities Depository. The system uses the same ISINs as traditional securities, allowing digital and conventional forms of the same asset to remain fungible.