The Bank of England dated 18 September 2026 a Sandbox Approval Notice stating that ClearToken CSD Limited (company number 15856917) has passed Gate 2 of the Digital Securities Sandbox and is approved to participate as a Digital Securities Depository, according to the Gate 2 SAN PDF opened on the Bank’s site and the Bank’s DSS dashboard listing the same date. ClearToken’s own 22 September Mondovisione release announced the Gate 2 outcome publicly and claimed several market “firsts”; mechanism language below follows the Bank SAN and dashboard, not marketing superlatives.
Gate 2 is the step that turns a sandbox entrant from non-live testing into permission to carry FMI activities in a live environment under the FMI sandbox arrangements. The Bank’s Gate 1 notice for ClearToken (12 December 2024), also opened, states expressly that Gate 1 alone does not permit live activity. The Gate 2 SAN replaces the Gate 1 SAN and is issued under the Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023.
What the SAN authorises, as the Bank text states: core DSD functions of notary (initial recording), central maintenance of securities accounts at the top tier, and operating a securities settlement system, for FMI sandbox instruments that are certificates represented by Tokenised Depository Interests. Capacity limits listed in the SAN include £600 million for UK government debt, £900 million for GBP corporate bonds, and £1.8 billion for non-GBP corporate bonds; FTSE 350 share TDIs are listed with a limit marked “TBC.” Section E conditions require a Gate 2 self-attestation satisfactory to the Bank, Bank confirmation of the FTSE 350 limit amount, and confirmation of a capital injection meeting the DSS minimum capital requirement — so some live-activity conditions remain to be satisfied as written.
The SAN also approves ClearToken as a “type (b) banking services provider,” meaning it may engage credit institutions to settle cash payments for its securities settlement system under DSS rules, and lists Category 1 ancillary activities such as securities lending and collateral-management services as agent among settlement-system participants, subject to conditions. The SAN restricts the firm from providing services directly to retail customers; Tokenised Depository Interests may only be issued 1:1 with the underlying asset; safeguarding of underlyings must be by an appropriately FCA-authorised entity. ClearToken’s company release states further asset-class expansion (global equities, private funds, commodities, digital assets) would be “subject to further approval” — an aspirational roadmap, not Gate 2 scope.
What to watch without mood: Bank confirmation of the FTSE 350 limit and satisfaction of the Section E conditions; whether custody volumes approach the gilt and corporate-bond caps; any update to the published SAN; and how the temporary sandbox regime interacts with a still-unwritten permanent UK DSD regime. ClearToken’s release itself notes that Bank acceptance of Tokenised Depository Interests as transferable securities is limited to the sandbox duration and sets no precedent for a permanent regime.
Floor: Bank of England Gate 2 SAN for ClearToken CSD Limited dated 18 Sep 2026 — DSD approved for notary/maintenance/settlement of TDI certificates in UK gilts (£600m), GBP corporates (£900m), non-GBP corporates (£1.8bn), FTSE 350 shares (limit TBC); type (b) banking-services provider; live under DSS conditions (self-attestation, capital, FTSE limit confirmation); no retail; 1:1 TDI. Dashboard lists Gate 2 18 Sep. Company PR 22 Sep colour — attribute.