ClearToken Secures BoE Approval for Tokenised Settlement
ClearToken becomes the first non-bank to pass Gate 2 for a digital securities depository.
Key points
- ClearToken received Bank of England Gate 2 approval to operate a digital securities depository.
- The initial scope covers FTSE 350 equities, sterling government debt, and corporate bonds.
- ClearToken is the first non-bank and first cloud-native system to pass this stage.
ClearToken received Gate 2 approval from the Bank of England on 22 September 2026. This authorisation permits the firm to operate a digital securities depository within the sandbox.
The approval allows ClearToken to issue and settle tokenised versions of existing securities. It operates under direct supervision from the Bank of England with specific operational limits.
Initial Asset Scope Defined
Live settlement services will initially support FTSE 350 equities and sterling government debt. The system also covers GBP and non-GBP corporate bonds for immediate use.
These assets can serve as collateral for securities financing transactions. The infrastructure supports round-the-clock intraday repo activities for institutional participants.
First Non-Bank Operator
ClearToken is the second company to pass Gate 2 and the first non-bank entity to do so. It is also the first cloud-native securities settlement system in the United Kingdom.
The firm claims to be the first depository to settle tokenised equities and sovereign debt. This positions it ahead of other competitors in the digital assets space.
Regulatory Framework Confirmed
Ben Santos-Stephens noted that regulatory recognition was the primary hurdle for institutional adoption. He stated that technology was rarely the main barrier to entry.
Akash Sharma described the outcome as a live, supervised market infrastructure. He thanked the Bank of England and FCA for their rigorous engagement throughout the process.
Asset Servicing Times reports that the firm plans to expand eligibility in phases. Future additions may include private funds, physical commodities, and other digital assets.
