How ClearToken and Nasdaq Are Tackling the Digital Asset Settlement Problem

Digital asset markets are stuck in the past. Unlike traditional finance where centralized clearing houses handle netting and settlement efficiently, crypto trading still operates mostly on a gross basis—meaning traders must lock up capital for every single transaction with every counterparty. It’s capital-intensive, risky, and it’s been holding back institutional adoption.

That just changed. ClearToken has integrated Nasdaq’s Eqlipse Clearing technology to launch CT Settle, a delivery-versus-payment settlement service that finally brings institutional-grade infrastructure to digital assets. After receiving authorization from the UK Financial Conduct Authority (FCA), the platform can now process settlements for both crypto and fiat with significantly reduced risk.

What This Means for the Market

The current crypto settlement landscape is messy. Most trades happen bilaterally on unnetted basis, forcing participants to prefund transactions at full value. ClearToken’s solution nets positions and settles them in real-time, dramatically freeing up capital that would otherwise sit idle.

Steve Briscoe, CIO of ClearToken, explained the core benefit: “We can now offer settlement services that allow institutions to net their exposures and settle digital assets with greatly reduced settlement risk.” For fund managers and institutional asset store operators managing large portfolios, this translates to better capital efficiency and lower counterparty exposure.

The Technology Behind It

Nasdaq Eqlipse Clearing isn’t new—it’s battle-tested. The platform supports over 20 central counterparty clearing houses globally and handles trillions in traditional market infrastructure. But applying it to 24/7 digital asset markets required new capabilities: fractional ownership support, around-the-clock processing, and real-time risk management.

ClearToken chose Nasdaq because the platform offers:

• Cloud-native architecture for scalability and resilience
• Embedded AI for faster onboarding and operations
• Multi-asset clearing across cryptocurrencies, stablecoins, and fiat
• Real-time margin and default fund calculations

Building the Central Clearing Counterparty for Crypto

CT Settle is just the beginning. ClearToken is building toward CT Clear—a full central counterparty clearing house that will connect multiple trading venues, custodians, and settlement systems. Rather than forcing traders to interface with each other bilaterally, they’ll route through a neutral CCP, dramatically cutting friction and risk.

The firm is also developing digital depository capabilities within the Bank of England’s Digital Securities Sandbox to support tokenized assets and ensure legal settlement finality.

Why Now?

Institutional adoption of crypto has hit a capital efficiency wall. As Magnus Haglind, Head of Capital Markets Technology at Nasdaq, noted: “Capital inefficiency across the digital asset ecosystem is a significant barrier to achieving scale.”

By bringing proven traditional market infrastructure to digital assets, ClearToken’s approach signals a maturation of the ecosystem. It’s the kind of plumbing that institutions demand before moving serious capital into crypto markets.

The real game-changer: this is happening on a neutral, UK-regulated platform that’s pursuing broader recognition from the CFTC in the US and regulators in Abu Dhabi. That’s institutional-grade legitimacy.