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Introducing Clear Markets, a Regulated Marketplace for Swap Contracts

“The Clear Markets Crypto Derivatives Credit Risk Mitigation System is an exceptional use of blockchain technology. This clever innovation reduces the risk of crypto derivatives trading, which is expanding rapidly across the globe” --Kazutoshi Shideharaof Archinode, the Singapore-based crypto fund

“The Clear Markets Crypto Derivatives Credit Risk Mitigation System is an exceptional use of blockchain technology. This clever innovation reduces the risk of crypto derivatives trading, which is expanding rapidly across the globe”
--Kazutoshi Shideharaof Archinode, the Singapore-based crypto fund

The Clarity Token Sale is now live on Liquid. This is first chance for the public to buy Clarity tokens (available only outside the US and Japan).

What is the Clarity token?

One of the most intriguing areas in cryptocurrency trading is the use of derivatives—forwards contracts, swaps, and options. But parties to these contracts must manage the risk that one party misses a payment to the other – the “credit risk” of these deals.

Clear Markets aims to mitigate this risk with Clarity tokens, the native currency of the Clear Markets blockchain. This private network is based on the proprietary distributed ledger technology Corda, developed by the enterprise blockchain software firm R3.

Corda provides a secure, high-quality, low-cost global transaction network that affords much higher transaction rates and less risk of hacking and disruption than some other public blockchain technologies.

Clear Markets, operator of marketplaces for swap contracts regulated by the Commodity Futures Trading Commission in the US, Financial Services Agency in Japan, and FCA in the UK and Europe, intends to add crypto derivatives to its offerings. Derivatives are among the most in-demand products in crypto trading, and the firm is bringing a digital token-driven approach to the management of crypto derivatives.

Clarity will be part of an innovative system to manage the risk of cryptocurrency derivatives. The vision is to build a rational, welcoming crypto derivatives ecosystem by creating a blockchain that is integrated into the Clear Markets electronic trading platform for swaps and other derivatives. Clarity’s inherent value will come from its adoption by derivatives users, with the token used to make payments and purchase services across the network. The whitepaper is available by request at clrx@clearmarkets.io.

Adoption

Successful projects build products that are used. Clear Markets has a head start. The firm’s nascent markets for traditional derivatives in fiat currency have been licensed by leading derivatives regulators in the US and Japan.

In addition, Clear Markets is part-owned by both SBI Group and Nikkei Group’s QUICK, two leading companies in Japan’s financial information and technology sector. SBI is building a unique cryptocurrency ecosystem that contains Clear Markets among its many services. QUICK has integrated Clear Markets into its private financial information network, distributed widely in Japan. Nonetheless, the Clarity token and related crypto derivatives will be on offer in Japan only after the authorities there approve them for sale.

“It was to support remarkable projects like this that we invested in Clear Markets and R3, and proudly support them today,” said Mamoru Fujimoto, Executive Officer and Head of Blockchain Promotion Dept., SBI Holdings, Inc.