UK's Digital Securities Sandbox Launches

The Bank of England (BoE) and the Financial Conduct Authority (FCA) have launched a Digital Securities Sandbox (DSS) to allow companies to explore how Distributed Ledger Technology (DLT) can be used for the authentication, maintenance, and settlement of financial securities.

The FCA recognizes the potential for this technology to bring efficiency, transparency, and resilience to markets. The regulator says that if implemented successfully, these technologies could make processes cheaper and faster, leading to "cost savings for markets and users". It emphasizes 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 BoE and FCA.

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