With crypto currencies and assets firmly lodged in the public
mind, regulators need to lay guardrails to facilitate innovation
and combat misbehaviour
Tokenisation of existing securities
Tokenisation of securities (securities that are traditionally
issued but then represented digitally using distributed ledger
technology (DLT), or security tokens that exist only on DLT) is a
focus for many in the financial services industry including banks
and financial market infrastructure.
The EU DLT Pilot regime launched in March 2023 and allows the
testing of use of DLT for issuance, trading, and settlement of
certain tokenised financial instruments.
In the UK, we expect 2024 to see the first applications to the
Digital Securities Sandbox. The government hopes the sandbox will
enable the issue, trading, and settlement of digital securities to
be tested and help facilitate the adoption of digital asset
technology in UK financial markets. Whether the UK sandbox
