Consensys and ClearToken target 24/7 institutional settlement

Consensys and UK market infrastructure group ClearToken have partnered to develop round-the-clock settlement for tokenised securities and cash, a step aimed at letting institutions move assets whenever blockchain networks are available. The firms announced the deal on October 8, saying the work would pair Consensys’ blockchain technology with ClearToken’s regulated settlement framework, according to Consensys’ announcement.

The plan addresses a gap in tokenised markets: an asset may move on a blockchain at any time, while the systems that clear and settle trades often follow market hours. The partnership is intended to connect those processes and give banks, brokers and asset managers a way to handle tokenised assets and cash around the clock.

How would the partners settle trades around the clock?

ClearToken CSD Limited is designed to let eligible securities held at different banks be tokenised and treated as one interchangeable instrument. It has Gate 2 approval in the Bank of England’s Digital Securities Sandbox, a testing program for digital securities infrastructure.

With ClearToken Depository Limited, an FCA-authorised payment institution, the firms aim to settle securities against cash on a delivery-versus-payment basis. That means the asset and payment transfer together. The cash could be fiat currency, tokenised deposits or stablecoins, and the target is 24/7 settlement, The Paypers reported.

What does each company bring to the partnership?

Consensys will provide technology to connect banks, brokers and asset managers across different blockchain networks and financial market systems. It will also supply tokenisation infrastructure, wallets and access to institutional clients.

ClearToken is building the legal and clearing framework. The companies describe their roles as combining two kinds of finality: blockchain records that cannot be changed, and legal certainty that a completed transfer is final. That distinction matters to institutions that need both reliable records and clear rules for when a trade is settled.

Is the service ready to launch?

The announcement describes a partnership and a target, not a fully authorised 24/7 clearing service. Consensys President David Cunningham said the route to round-the-clock clearing and settlement is subject to Bank of England clearing authorisation. ClearToken has separately applied to the Bank for approval as a central counterparty, a firm that stands between buyers and sellers to manage settlement risk.

The partnership’s next step therefore depends on regulatory approval as well as the technical work. Until then, the companies’ plan shows how tokenised securities could be linked to cash settlement across different networks, but it does not confirm when institutions will be able to use the full service.

Sources

• according to Consensys’ announcement — consensys.com
• The Paypers reported — thepaypers.com