Digital financial market infrastructure provider ClearToken and blockchain platform Canton Network have inked a new strategic partnership.
The partnership will see ClearToken launch three new digital asset platforms on ClearToken’s privacy-conscious institutional blockchain network.
According to ClearToken, the deployment of these platforms on the Canton Network will improve payment infrastructure and reduce principal risk in the $315 billion stablecoin market.
The first of these platforms, CT Register, will allow users to tokenise and detokenise fiat, stablecoins and securities, which will show up on the Canton Network as data tokens. According to ClearToken, this will enable “programmable, auditable settlement workflows” for its customers.
The second platform, called CT Pay, is designed specifically for single-sided payments and payment-versus-payment settlement. By allowing the simultaneous discharge of cross-bank payment obligations, ClearToken claims the platform will make cross-currency transactions less risky.
The third platform, named CT Settle, provides users with delivery-versus-payment net settlement for fiat currencies, crypto and stablecoins. It also offers crypto and stablecoin net settlement. According to ClearToken, the UK Financial Conduct Authority (FCA) has authorised these features.
In addition to its FCA approval, ClearToken says risk is reduced for its customers thanks to the atomic composability feature offered by Canton Network’s blockchain network. It explained that this will ensure ‘all settlement legs complete simultaneously or not at all’.
In the foreseeable future, ClearToken hopes to complement these three platforms with a fourth covering payment clearing. Benjamin Santos-Stephens, CEO of ClearToken, said his company is currently pursuing approval for the platform by the Bank of England and claims it will “reduce counterparty risk by interposing a trusted intermediary between trading counterparties”.
Speaking of the Canton Network partnership, he added: “CT Register, CT Pay and CT Settle deployed on Canton give institutions the regulated end-to-end settlement stack they need to unlock tokenisation, by providing PvP payment certainty and DvP finality of settlement across every form of digital money.”
