On October 2nd, the Bank of England (BoE) and the Financial Conduct Authority (FCA) launched the Digital Securities Sandbox (DSS), allowing companies to explore how Distributed Ledger Technology (DLT) can be used for the authentication, maintenance, and settlement of financial securities. The FCA recognizes that developing this technology has the potential to bring efficiency, transparency, and resilience to the market.

The regulator stated that if these technologies are successfully implemented, they could make processes cheaper and faster, resulting in "cost savings for both markets and users." It emphasized that the DSS will promote the trading, settlement, and issuance of digital securities in the UK. This will be done on programmable and distributed ledgers while adhering to the regulations of the Bank of England and the FCA.

The FCA added that this move will strengthen the UK's position as a global financial center, creating the right conditions for investment and sustainable growth.