Nomura’s digital asset subsidiary Laser Digital has directed investment funds to the development of the startup ClearToken.
This startup is currently preparing a clearing house for the digital asset market. There is no information about the number of investments aimed at the development of the company yet.
ClearToken stated that it has identified a missing element in the structure of the digital asset market and is currently filling it by creating a central counterparty.
The startup will eliminate the risks of bilateral counterparties in settlements, financing, and transactions with derivative financial instruments. This goal will be achieved by centralizing clearing, settlement, collateral, and risk management mechanisms similar to traditional exchange-traded assets.
The solution that the startup is going to offer will allow all participants of the ecosystem – investors, exchanges, brokers, market makers, and custodians – to come face to face with CCP, and not with each other. This scheme of activity will optimize the process of making transactions, which will increase the level of efficiency of capital use and reduce risks for all participants.
CCP ClearToken is not a product for any particular exchange or platform and can be used to conduct over-the-counter transactions that have previously been agreed upon on a bilateral basis.
Ben Stevens, CEO of ClearToken, says that the startup strives to ensure that its solution brings the market to a new level of development. He also said that negotiations are currently underway with major market participants who support the firm’s initiative.
Jez Mohidin, CEO of Laser Digital, who is on the board of directors of ClearToken, noted that the ClearToken initiative is capable of transforming a market where there are two-way risks.
Nicky Beatty, chairman of ClearToken, says that digital asset technology can contribute to a profound transformation of financial markets. He also noted that this technology contains innovative solutions concerning transparency and efficiency.
As we have reported earlier, Walmart Invests $200 Million in PhonePe.