ClearToken CSD has become the second firm approved by the Bank of England to conduct live transactions in the UK’s Digital Securities Sandbox, and the first non-bank. The startup received Gate 2 approval, allowing it to issue and settle tokenized versions of existing securities under Bank of England supervision.
At launch, ClearToken’s depository will support FTSE 350 equities, GBP government debt and corporate bonds. Subject to further approval, the firm plans to expand to global public equities, private funds, physical commodities and digital assets.
The approval gives ClearToken a broader scope than HSBC, which received the first Gate 2 approval in July for digitally native bond issuance after the HSBC Orion platform was selected for the government’s forthcoming digital gilt (DIGIT). ClearToken’s support for 24/7 settlement enables intraday repo, borrowing against collateral for hours rather than days.
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