ClearToken and Consensys have partnered to support 24/7 settlement of tokenised assets and cash for wholesale markets.
UK-based ClearToken, a market infrastructure group for digital and traditional assets, and Consensys, a protocols and institutional infrastructure company, have formed a strategic partnership aimed at moving tokenised assets and cash onto always-on infrastructure with the legal certainty and controls required in wholesale markets. The partnership combines two forms of finality. Consensys provides cryptographic finality, the technical certainty that a transaction recorded on chain cannot be altered, while ClearToken is designed to provide settlement finality, the legal certainty that a transfer of money or assets is final and irrevocable.
Settlement within the UK regulatory perimeter
The partners argue that tokenised assets able to move around the clock offer limited value if post-trade processes such as clearing, settlement, and safekeeping cannot operate on the same basis. To address this, ClearToken CSD Limited is designed to allow eligible securities held at different banks to be tokenised and recognised as a single fungible instrument, under its Gate 2 approval in the Bank of England’s Digital Securities Sandbox. Working with ClearToken Depository Limited, the group’s FCA-authorised payment institution, the aim is to settle these securities on a delivery-versus-payment basis against cash, including fiat, tokenised deposits, and stablecoins, on a 24/7 basis.
Consensys will contribute interoperability, connecting banks, brokers, and asset managers across blockchain networks and financial market infrastructures in a private and compliant manner. ClearToken will also draw on Consensys for tokenisation infrastructure, as well as for the wallets and client reach needed to bring tokenised assets to institutional clients and partners. The arrangement divides responsibilities, with Consensys covering technology and distribution and ClearToken providing the legal and clearing framework within the UK regulatory perimeter.
Interoperability across networks
Ben Santos-Stephens, CEO of ClearToken Group, stated that wholesale markets are adopting a growing range of networks and blockchains, and that realising their potential depends on infrastructure that connects the banks, assets, and ledgers already in use, across whichever networks institutions choose. According to Santos-Stephens, Consensys brings the technology and institutional relationships, while ClearToken is building the legal and clearing framework institutions need to rely on it. Mark Williamson, Chief Commercial Officer of ClearToken Group, added that clients have primarily asked for tokenisation that fits into how they already manage risk and collateral.
David Cunningham, President of Consensys, stated that financial institutions and market infrastructures are moving to always-on operations, with tokenisation at the core, and that Consensys is delivering interoperability for bank-issued tokens across multiple payment schemes and financial market infrastructures. He noted that ClearToken is building a regulated route to clearing and settlement on a 24/7/365 basis, subject to clearing authorisation by the Bank of England. According to Cunningham, the combination would allow clients to operate around the clock and reduce risk. The next step for the 24/7 settlement model therefore depends on that regulatory authorisation.
