Consensys and ClearToken target 24/7 wholesale settlement

Consensys and ClearToken have agreed to develop infrastructure for round-the-clock settlement of tokenised securities and cash in wholesale markets, adding a regulated post-trade route to markets where blockchain transactions can already run continuously. The partnership, announced on 8 October, aims to connect securities held at different banks as one fungible instrument and settle them against cash on a delivery-versus-payment basis. In its announcement, Consensys says the cash could include fiat, tokenised deposits or stablecoins.

The distinction is between a token moving at any hour and the legal transfer of the underlying asset being final. Consensys supplies blockchain and interoperability technology; ClearToken is building the clearing and settlement framework. The firms have not announced a launch date, participating banks, transaction volumes or commercial terms, so this is a partnership to build the connection rather than a disclosed, widely available service.

What does the partnership add to existing settlement?

It aims to bring securities settlement closer to the continuous operation of digital asset networks. Traditional post-trade processes rely on operating windows and intermediaries, while an on-chain transfer can be recorded outside those schedules. But a blockchain record alone does not establish that the legal transfer of a security is irrevocable. The companies’ proposed combination pairs that technical record with ClearToken’s settlement framework, seeking to address both sides of the transaction.

ClearToken says its CSD Limited is approved to operate as a Digital Securities Depository in the Bank of England’s Digital Securities Sandbox, subject to conditions. The Bank’s sandbox dashboard records ClearToken’s passage through Gate 2 on 18 September. That approval permits live activity within the sandbox, but does not mean every security, cash instrument or participant can use the service without limits. ClearToken Depository Limited, a separate group entity, is an FCA-authorised payment institution.

How does delivery-versus-payment change the proposition?

Delivery-versus-payment links the transfer of a security to the corresponding cash payment: the intended result is that one leg does not settle without the other. ClearToken says its CSD is designed to tokenise eligible securities held at different banks and recognise them as a single fungible instrument. Working with its payment institution, the group aims to settle them continuously against fiat, tokenised deposits and stablecoins.

That range of cash options could give institutions more flexibility than relying on one settlement asset. It also adds conditions. The Bank of England says sandbox firms seeking to use stablecoins must request approval for specific coins, assessed case by case against the Bank’s requirements. So the announcement does not establish that any stablecoin can be used, or that cash and securities will be interchangeable across all networks.

What still has to happen before institutions can rely on it?

ClearToken says its separate central counterparty, ClearToken CCP Limited, has applied to the Bank of England for authorisation. Consensys president David Cunningham said the proposed 24/7 clearing and settlement route is subject to that authorisation. The partnership also depends on institutions connecting their systems and deciding that the legal, operational and risk controls fit their existing processes.

Compared with crypto-native settlement, the proposed model puts more emphasis on supervised market infrastructure and legal finality; compared with established post-trade arrangements, it aims to extend settlement beyond scheduled windows. That may support faster movement of collateral and securities, while sandbox conditions, regulatory permissions and the work of connecting multiple networks constrain its reach. The next signals are any CCP decision, the specific assets and cash instruments approved for use, and evidence of participating institutions and live transactions.

Sources and documents

• announcement — consensys.com
• sandbox dashboard — bankofengland.co.uk