ClearToken Wins BoE Approval for Digital Securities Depository
ClearToken has received approval from the Bank of England to operate a Digital Securities Depository (DSD) in the UK. The authorisation, known as Gate 2 approval, will allow ClearToken to issue and settle tokenised versions of existing securities under the Bank's supervision and certain limits.
The initial live settlement services will support FTSE 350 equities, sterling-denominated government debt, and GBP and non-GBP corporate bonds. These assets can be used as collateral for securities financing transactions and intraday repo. ClearToken intends to expand eligibility in phases to more asset classes, including global public equities, private funds, physical commodities, and digital assets.
ClearToken is the first DSD to settle tokenised equities, corporate bonds, and sovereign debt. Ben Santos-Stephens, CEO of ClearToken Group, notes that the biggest hurdle for institutional adoption of digital securities has been regulatory concerns, not technology.
Akash Sharma, head of policy and regulatory affairs at ClearToken Group, praises the UK's 'rigorous and proportionate process' in granting approval. He thanks the Bank of England and the Financial Conduct Authority for their engagement throughout the process.