Cleartoken Raises $10M To Launch Digital Asset Clearing Services In The U.K.
Cleartoken, a crypto clearing house startup, announced on Monday that it secured $10 million in funding from strategic investors such as Nomura’s Laser Digital, Flow Traders, GSR, Zodia Custody, and LMAX Digital.
The funding aims to support Cleartoken’s objectives, including compliance with U.K. regulations and obtaining clearance from the Bank of England. Cleartoken plans to introduce Central Counter Party (CCP) services within the next 12 to 18 months, followed by initial settlement services in 2024 pending approval from the Financial Conduct Authority (FCA) and the Bank of England. The company aims to demonstrate how its CCP model can minimize digital asset trading risks and enhance capital efficiency by eliminating pre-payments and collateralizing positions with margins.
Cleartoken CEO, Benjamin Santos-Stephens, emphasized the U.K.’s conducive regulatory environment for digital assets and its position as a global leader in clearing services. The company seeks to address systemic and counterparty risks for members managing diverse exposures, including over-the-counter (OTC) transactions. Matt O’Neill, Global Head of Business Development at Flow Traders, expressed confidence in Cleartoken’s central clearing solution, citing its potential to improve counterparty risk management and capital efficiency while addressing key market challenges.
Clever Robot News Desk 15th March 2024
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