ClearToken Gains FCA Approval for Crypto Settlement System

ClearToken, a digital asset clearing and settlement company, has received approval from UK regulators to launch a system for settling crypto and stablecoin transactions — a move that underscores the country’s push to expand oversight of digital finance.

The company announced Tuesday that it had received authorization from the Financial Conduct Authority (FCA) to operate its Delivery versus Payment (DvP) settlement platform, known as CT Settle, which will support spot trades in crypto assets, stablecoins and fiat currencies.

Once CT Settle becomes operational, regulated financial institutions will be able to use a digital asset settlement system that functions under the same regulatory and operational standards as traditional financial infrastructure.

ClearToken said CT Settle is designed to alleviate barriers to adoption among institutions hesitant about digital assets, particularly in terms of market efficiency, liquidity and counterparty risk.

Niki Beattie, ClearToken’s chair, said the authorization would be a “catalyst [for] digital assets to be adopted at scale.”

Related: Related: Coinbase turns lobbying efforts to UK in scathing op-ed

Broader industry shifts in the UK

The FCA’s decision to authorize ClearToken reflects a wider regulatory shift in the United Kingdom toward integrating digital assets into the traditional financial system.

Earlier this week, the Bank of England opened a consultation on stablecoins, seeking feedback on proposed rules that could take effect as early as next year. Governor Andrew Bailey has recently softened his stance on the risks stablecoins pose to financial stability, suggesting a more pragmatic approach to regulation.

The moves come amid concerns that the UK is falling behind other countries in stablecoin adoption, particularly the United States, following the passage of the GENIUS Act.

In April, HM Treasury published a draft policy paper outlining the future financial services regulatory regime for crypto assets, which aims to formally define certain types of digital assets and bring key activities, such as issuance, custody and trading, within the UK’s regulated perimeter.

Separately, the UK government has also opened the market for crypto exchange-traded notes (ETNs) to retail investors, signaling a broader national effort to integrate digital assets into mainstream financial markets.

Related: BoE signals flexibility on stablecoin caps amid industry pushback: Report