Consensys and ClearToken target 24/7 securities settlement

Banks and asset managers could eventually settle eligible tokenised securities against cash around the clock under a partnership announced by Consensys and ClearToken on October 8, though the service still depends on regulatory steps. The Consensys announcement says the companies aim to combine ClearToken’s UK market infrastructure with Consensys’s blockchain technology.

For institutions, the proposal addresses a practical gap: tokenised assets may move at any hour, but clearing and settlement need legal certainty and matching cash rails.

Which assets and cash could settle around the clock?

ClearToken CSD Limited is designed to let eligible securities held at different banks be tokenised and treated as one fungible instrument. The company says its CSD passed Gate 2 in the Bank of England’s Digital Securities Sandbox, allowing it to operate as a digital securities depository for tokenisation and de-tokenisation.

Under the partnership plan, ClearToken Depository Limited would work with the CSD to settle securities on a delivery-versus-payment basis. That means the asset and payment change hands together, so neither side completes its leg without the other. The cash leg could use fiat, tokenised deposits or stablecoins, according to the announcement.

What would institutions need to use it?

They would need access to ClearToken’s settlement infrastructure and compatible cash and asset arrangements; the announcement does not describe a sign-up process or name participating banks, brokers or asset managers. ClearToken Depository is an FCA-authorised payment institution, while Consensys says it will provide tokenisation technology, wallets and links across blockchain networks and financial market infrastructure.

ClearToken describes its CT Settle service as net delivery-versus-payment settlement: obligations across trades can be combined into a net amount for each asset, reducing the number and size of transfers. The firms have not published pricing for this partnership, so institutions cannot yet compare its fees or estimate implementation costs from the announcement.

What could delay a launch?

The partnership announcement describes a route the firms aim to build, not a newly available service for wholesale securities. Consensys President David Cunningham said the 24/7 clearing and settlement route remains subject to Bank of England clearing authorisation. ClearToken’s own group information says its central counterparty has applied for that authorisation.

That distinction matters for firms weighing operational changes: the CSD’s Sandbox approval covers securities depository activity, while central clearing is a separate regulatory step. The announcement gives no launch date, customer commitments or timetable for that approval, so institutions will need to check those points before planning to move settlement flows.

Source material

• Consensys announcement — consensys.com
• CT Settle service — cleartoken.io