The Bank of England and the UK's financial regulator (FCA) have created a sandbox to investigate the potential uses of digital recording technology (DLT) in the notarization, maintenance and settlement of financial securities.
Dubbed the Digital Securities Sandbox (DSS), the initiative was announced on September 30 and is intended to allow firms to explore the benefits of using DLT for financial securities.
According to the Financial Conduct Authority (FCA), emerging technologies have the potential to improve the efficiency, transparency and resilience of financial markets.
The DSS will specifically focus on enabling the trading, settlement and issuance of digital securities in the UK using programmable and distributed ledgers, while respecting the regulations set by the Bank of England and the FCA.