- Financial regulators and institutions discussed tokenized wholesale markets, pension simplification, and youth financial anxiety.
- The IIF has responded to the joint consultation regarding tokenization and Distributed Ledger Technology (DLT) between the FCA and the Bank of England.
Bank of England Grants Gate 2 Approval for ClearToken Digital Securities Depository
What happened
ClearToken received Gate 2 approval from the Bank of England to operate a Digital Securities Depository (DSD) within the Digital Securities Sandbox (DSS). This authorization allows ClearToken to issue and settle tokenized versions of existing securities under the Bank's supervision and specific limits. The initial live settlement services support FTSE 350 equities, sterling-denominated government debt, and corporate bonds denominated in GBP or other currencies. These assets can be used for securities financing transactions and 24/7 intraday repo.
Why it matters
The approval establishes ClearToken as the first DSD to settle these asset classes and the first non-bank to achieve this status. The authorization allows the firm to operate under the Bank of England’s supervision, marking a significant step in the tokenization of financial markets. The firm stated that the infrastructure around digital securities needed to be sufficiently regulated, robust, and legally recognized for institutional adoption.
Who's involved
- Bank of EnglandCentral bank of the United Kingdom that granted the operational authorization.
Keep exploring
The entities involved
-
Bank of England
central bank of the United Kingdom
-
Financial Conduct Authority
quasi-governmental agency in the United Kingdom