The Central Bank of the UK and the FCA have launched a digital securities sandbox to explore the use of DLT in financial securities.

The Bank of England (BoE) and the Financial Conduct Authority (FCA) of the United Kingdom launched the Digital Securities Sandbox (DSS), allowing companies to explore how to use Distributed Ledger Technology (DLT) for notarization, maintenance, and settlement of financial securities. The FCA recognizes that the development of technology has the potential to bring efficiency, transparency, and resilience to the market. The regulatory body stated that if these technologies are successfully implemented, they could make processes cheaper and faster, thus ‘saving costs between the market and users.’ It emphasizes that DSS will facilitate the trading, settlement, and issuance of digital securities in the UK. This will be achieved through programmability and distributed ledger, while complying with the regulations of the UK Central Bank and FCA. The FCA added that this measure will strengthen the UK’s position as a global financial center, and it will create the right conditions for investment and sustainable rise. (Cointelegraph)