UK Regulators Approve ClearToken's Crypto Settlement Platform

According to Cointelegraph, ClearToken, a digital asset clearing and settlement company, has received approval from UK regulators to launch a system for settling crypto and stablecoin transactions. This development highlights the United Kingdom's efforts to enhance oversight of digital finance. The company announced on Tuesday that it had secured authorization from the Financial Conduct Authority (FCA) to operate its Delivery versus Payment (DvP) settlement platform, CT Settle. This platform will support spot trades in crypto assets, stablecoins, and fiat currencies. Once operational, CT Settle will enable regulated financial institutions to utilize a digital asset settlement system that adheres to the same regulatory and operational standards as traditional financial infrastructure. ClearToken emphasized that CT Settle is designed to address barriers to adoption among institutions wary of digital assets, particularly concerning market efficiency, liquidity, and counterparty risk. Niki Beattie, ClearToken’s chair, stated that the authorization would serve as a catalyst for the widespread adoption of digital assets. The FCA's decision to authorize ClearToken is part of a broader regulatory shift in the United Kingdom towards integrating digital assets into the traditional financial system. Earlier this week, the Bank of England initiated a consultation on stablecoins, seeking feedback on proposed rules that could be implemented as early as next year. Governor Andrew Bailey has recently moderated his stance on the risks posed by stablecoins to financial stability, indicating a more pragmatic approach to regulation. These developments occur amid concerns that the UK is lagging behind other countries, particularly the United States, in stablecoin adoption following the passage of the GENIUS Act. In April, HM Treasury released a draft policy paper outlining the future financial services regulatory regime for crypto assets. This document aims to formally define certain types of digital assets and incorporate key activities, such as issuance, custody, and trading, within the UK’s regulated perimeter. Additionally, the UK government has 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.