ClearToken has received approval from the UK FinancialConduct Authority (FCA) to launch a regulated settlement system for digitalassets, marking a significant step in Britain’s effort to integrate crypto intotraditional financial frameworks.Digital assets meet tradfi in London at the fmls25The authorization allows the London-based digitalfinancial market infrastructure group to roll out CT Settle, a Delivery versusPayment (DvP) platform designed to bring institutional-grade infrastructure tocrypto, stablecoin, and fiat transactions. ClearToken Depository Limited, the company’ssettlement arm, is now authorized as a Payment Institution under the UK’sPayment Services Regulations and registered as a crypto asset firm underanti-money laundering laws. A Regulated Path for Digital SettlementAccording to the company, these dual permissions enable it to operate a fullyregulated DvP settlement system, where transactions are exchanged only whenboth payment and asset delivery occur—mirroring safeguards long used intraditional markets.The soon-to-be-launched CT Settle platform aims toeliminate Herstatt risk and reduce the capital inefficiencies that have longplagued pre-funded crypto trading.Its horizontal model is agnostic to trading venues andcustodians, allowing firms to settle across multiple exchanges while unlockingliquidity and minimizing counterparty risk.By enabling true delivery-versus-payment settlement,CT Settle allows institutions to move capital more efficiently and securelyacross crypto, stablecoins, and fiat. The system also supports cross-marketnetting, consolidating exchange and over-the-counter (OTC) positions tosimplify workflows and reduce operational burdens.You may also like: UK Court Hands Nearly 12-Year Sentence in Massive £5B Bitcoin Case: ReportThe company said its approach has been tested with major market participants, ensuring that liquidity providers, assetmanagers, and custodians can integrate seamlessly with the new infrastructure.Laying the Foundation for Broader Market IntegrationThe FCA’s decision reflects a broader push by UKregulators to align digital asset markets with established financial standards.The Bank of England recently began consultations on stablecoin rules expectedto take effect next year, while HM Treasury continues to refine the nationalframework for digital assets, including custody and issuance.The FCA license marks the first phase of ClearToken’sroadmap. Next, the company plans to establish a Central Counterparty andapply to become a Recognized Clearing House under Bank of England oversight.That stage will enable margining, risk mitigation, and broader cross-assetclearing capabilities.This article was written by Jared Kirui at www.financemagnates.com.