Catenaa, Monday, November 17, 2025-The UK’s Financial Conduct Authority has granted approval to ClearToken to operate a regulated settlement service for digital assets, a move expected to accelerate the country’s digital finance modernization efforts.
London-based ClearToken’s new system, CT Settle, will allow institutions to settle trades in crypto, stablecoins, and fiat currency simultaneously through a delivery-versus-payment mechanism.
The process eliminates settlement risk by ensuring both sides of a trade close at once, similar to models used in foreign exchange markets.
The authorization designates ClearToken as both an Authorised Payment Institution and a registered cryptoasset firm.
The company said this forms the foundation for what it envisions as the UK’s first clearinghouse for tokenized and digital assets. ClearToken plans to seek Bank of England approval to expand into clearing and margining services under the central bank’s Digital Securities Sandbox.
The move comes as UK regulators face pressure to close the gap with the U.S. and European Union in building regulated digital markets.
The Financial Conduct Authority has recently relaxed restrictions on retail access to bitcoin and ether exchange-traded products, while the Bank of England is drafting rules for sterling-backed stablecoins.
Analysts at IG Group forecast that the UK’s crypto market could grow about 20% in 2026 as regulated infrastructure and new digital settlement systems gain traction.
