The regulatory sandbox aims to strengthen the United Kingdom’s position as a global financial hub.
The Bank of England (BoE) and the United Kingdom’s financial regulator have launched a sandbox to explore how digital ledger technology (DLT) can be used in the notary, maintenance and settlement of financial securities.
On Sept. 30, the BoE and the Financial Conduct Authority (FCA) announced the Digital Securities Sandbox (DSS), which allows companies to explore the benefits of DLT for financial securities.
The FCA recognized that developing technologies have the potential to bring efficiency, transparency and resilience to markets. The regulator said that if the technologies are implemented successfully, they could lead to “savings across markets and their users” by making processes cheaper and faster.
