Cleartoken Secures $10M in Funding to Pioneer UK's First Digital Asset Clearing House
On Monday, the crypto clearing house startup Cleartoken revealed that it raised $10 million from strategic investors including Nomura’s Laser Digital, Flow Traders, and LMAX Digital.
Cleartoken Nets $10M to Launch U.K. Digital Asset Clearing Services
The horizontal clearing house for the digital asset market, Cleartoken, revealed that it’s raised $10 million in order to bolster the crypto firm’s goals. The firm noted on Monday, that investors who participated included Nomura’s Laser Digital, Flow Traders, GSR, Zodia Custody, and LMAX Digital. Cleartoken further revealed it intends to comply fully with U.K. regulations, embarking on the journey to secure clearance from the Bank of England.
This step the company explained is geared towards introducing Central Counter Party (CCP) services within the next 12 to 18 months. In 2024, Cleartoken aims to roll out initial settlement services, contingent upon obtaining the necessary green lights from both the Financial Conduct Authority (FCA) and the Bank of England.
Moreover, Cleartoken plans to illustrate how digital asset transfers and trading risks can be minimized by eliminating the need for pre-payments, while also enhancing capital efficiency through the collateralization of positions with margins maintained by a CCP.
“Our investors have recognised that the U.K. government’s progressive legislative program to recognise and regulate digital assets enabling their safe adoption, combined with the U.K.’s existing position as a global leader in clearing services for securities markets, makes the U.K. the ideal jurisdiction to host the first digital asset clearing house,” Benjamin Santos-Stephens, the CEO of Cleartoken said on Wednesday.
The company seeks to show that a CCP can diminish systemic and counterparty risks for members managing multifaceted exposures – including over-the-counter (OTC) transactions across various venues and types of instruments.
Matt O’Neill, the Global Head of Business Development at Flow Traders, elucidated that the firm is of the view that sustained institutional engagement with digital assets necessitates a market structure deliberately crafted, featuring well-delineated roles and responsibilities.
“Cleartoken’s approach to developing a central clearing solution will contribute positively to counterparty risk management, capital efficiency, and addresses some of the key challenges market participants currently experience,” O’Neill concluded.
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