ClearToken, a digital asset clearinghouse, has recently secured a substantial investment exceeding $10 million, with notable contributions from Nomura’s digital asset arm, Laser Digital, alongside participation from prominent entities such as Flow Traders, GSR, LMAX Digital, and Zodia Custody, a subsidiary of Standard Chartered’s SC Ventures.
This influx of investment marks a significant milestone for ClearToken as it lays the groundwork for its forthcoming operations. The company has outlined a tentative timeline, targeting the commencement of its services between 2025 and 2026, contingent upon securing regulatory approval.
The pivotal role of a clearinghouse in the digital assets arena lies in its ability to authenticate and finalize transactions, thereby ensuring the fulfillment of contractual obligations by both parties and facilitating the seamless settlement of trades. Positioned between trade execution and settlement, a clearinghouse plays a crucial role in maintaining market integrity and efficiency.
ClearToken has articulated its ambition to attain full regulatory compliance in the UK. To this end, the company has initiated the process of seeking clearinghouse recognition from the Bank of England, with plans to introduce central counterparty clearing house (CCP) services within the next 12 to 18 months.
In the interim, ClearToken aims to roll out preliminary settlement services by 2024, pending approval from the UK regulatory authorities, including the Financial Conduct Authority (FCA) and the Bank of England.
Benjamin Santos-Stephens, CEO of ClearToken, expressed his satisfaction with the enthusiastic reception received from institutional investors, spanning both traditional market stalwarts and digital asset innovators. He underscored the perceived value proposition of ClearToken within digital asset markets, highlighting the company’s commitment to ushering in a new era of efficiency and transparency in digital asset transactions.
Nomura’s strategy in the digital asset realm.
In 2023, Nomura, Japan’s preeminent investment bank, made a significant move in the realm of digital assets by introducing its Bitcoin Adoption Fund through its crypto subsidiary, Laser Digital. This announcement marked a notable step forward for Nomura as it ventured into the burgeoning landscape of cryptocurrencies. To facilitate the custody of the fund’s assets, the firm disclosed its intention to utilize Koimanu, an entity established in 2018 through a collaborative effort between Nomura, Ledger, and Coinshares. The partnership with Koimanu underscores Nomura’s strategic approach to leveraging established expertise and industry alliances in navigating the complexities of digital asset custody.
In a pivotal development, both Laser Digital and Komainu successfully secured operating licenses from Dubai’s Virtual Asset Regulatory Authority (VARA). This regulatory milestone cleared the path for these entities to offer a wide array of digital asset trading services and investment products within the Dubai jurisdiction. By obtaining the necessary licenses from VARA, Nomura demonstrated its commitment to compliance and regulatory adherence, thereby enhancing its credibility and positioning itself as a trusted player in the rapidly evolving digital asset ecosystem.
Nomura’s foray into the digital asset space reflects a strategic response to the growing demand for cryptocurrency investment opportunities and underscores the bank’s proactive approach to embracing innovation in finance. With the establishment of the Bitcoin Adoption Fund and the partnership with Koimanu, Nomura has signaled its readiness to capitalize on the transformative potential of digital assets while ensuring robust regulatory oversight and operational integrity. This strategic initiative positions Nomura to cater to the evolving needs of investors seeking exposure to digital assets within a regulated and secure framework, further solidifying its status as a leading player in the global financial services landscape.
