ClearToken receives BoE approval for digital securities depository
22 September 2026 UK
Image: Mistervlad/stock.adobe.com
ClearToken Central Securities Depository (CSD) has received Gate 2 approval from the Bank of England (BoE) to operate a Digital Securities Depository (DSD) in the Digital Securities Sandbox (DSS).
The authorisation allows ClearToken to issue and settle tokenised versions of existing securities under the Bank鈥檚 supervision and certain limits.
At launch, the CSD live settlement services will support FTSE 350 equities, sterling-denominated government debt, and GBP and non-GBP corporate bonds, all of which can be used as collateral for securities financing transactions and 24/7 intraday repo.
ClearToken intends to expand eligibility in phases to more asset classes, including global public equities, private funds, physical commodities, and digital assets, subject to additional BoE approval.
According to the firm, it is the first DSD to settle tokenised equities, corporate bonds, and sovereign debt; the second company to pass Gate 2 and the first non-bank; and the first cloud-native securities settlement system in the UK.
Speaking on the authorisation, Ben Santos-Stephens, CEO of ClearToken Group, says: 鈥淭he biggest hurdle for institutional adoption of digital securities has not necessarily been the technology; it has been whether the infrastructure around that technology is sufficiently regulated, robust, and legally recognised.鈥�
Akash Sharma, head of policy and regulatory affairs at ClearToken Group, remarks: 鈥淭he UK has turned a tokenisation framework into a live, supervised market infrastructure where regulated institutions can settle assets carrying real rights.
鈥淲e thank the Bank of England and the Financial Conduct Authority for a rigorous and proportionate process, and for their engagement throughout.鈥�
The authorisation allows ClearToken to issue and settle tokenised versions of existing securities under the Bank鈥檚 supervision and certain limits.
At launch, the CSD live settlement services will support FTSE 350 equities, sterling-denominated government debt, and GBP and non-GBP corporate bonds, all of which can be used as collateral for securities financing transactions and 24/7 intraday repo.
ClearToken intends to expand eligibility in phases to more asset classes, including global public equities, private funds, physical commodities, and digital assets, subject to additional BoE approval.
According to the firm, it is the first DSD to settle tokenised equities, corporate bonds, and sovereign debt; the second company to pass Gate 2 and the first non-bank; and the first cloud-native securities settlement system in the UK.
Speaking on the authorisation, Ben Santos-Stephens, CEO of ClearToken Group, says: 鈥淭he biggest hurdle for institutional adoption of digital securities has not necessarily been the technology; it has been whether the infrastructure around that technology is sufficiently regulated, robust, and legally recognised.鈥�
Akash Sharma, head of policy and regulatory affairs at ClearToken Group, remarks: 鈥淭he UK has turned a tokenisation framework into a live, supervised market infrastructure where regulated institutions can settle assets carrying real rights.
鈥淲e thank the Bank of England and the Financial Conduct Authority for a rigorous and proportionate process, and for their engagement throughout.鈥�
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