DeFi Daily News
Sunday, June 29, 2025
Advertisement
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • Altcoins
    • DeFi-IRA
  • DeFi
    • NFT
    • Metaverse
    • Web 3
  • Finance
    • Business Finance
    • Personal Finance
  • Markets
    • Crypto Market
    • Stock Market
    • Analysis
  • Other News
    • World & US
    • Politics
    • Entertainment
    • Tech
    • Sports
    • Health
  • Videos
No Result
View All Result
DeFi Daily News
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • Altcoins
    • DeFi-IRA
  • DeFi
    • NFT
    • Metaverse
    • Web 3
  • Finance
    • Business Finance
    • Personal Finance
  • Markets
    • Crypto Market
    • Stock Market
    • Analysis
  • Other News
    • World & US
    • Politics
    • Entertainment
    • Tech
    • Sports
    • Health
  • Videos
No Result
View All Result
DeFi Daily News
No Result
View All Result
Home DeFi Web 3

UK Trial Aims to Use Digital Securities to Safeguard Market Integrity

Liam 'Akiba' Wright by Liam 'Akiba' Wright
October 1, 2024
in Web 3
0 0
0
UK Trial Aims to Use Digital Securities to Safeguard Market Integrity
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on Telegram
Listen to this article

Receive, Manage & Grow Your Crypto Investments With Brighty

The UK’s Financial Conduct Authority (FCA) and the Bank of England have officially launched the next phase of their Digital Securities Sandbox (DSS), enabling firms to explore distributed ledger technology (DLT) and tokenized securities within traditional financial markets.

The DSS, which will be operational until December 2028, provides a structured environment for testing and implementing DLT applications, aiming to enhance market efficiency, transparency, and resilience.

The initiative seeks to position the UK as a global leader in financial innovation by fostering conditions conducive to investment and sustainable growth. Divided into sequential stages known as gates, the DSS allows sandbox entrants to progressively increase their level of permitted activity as they advance through each phase.

Activities will go live after the Gate 2 stage, involving the issuance, trading, and settlement of actual digital securities. These securities are designed to function similarly to traditional counterparts, facilitating use in repurchase agreements and derivative contracts. Eligible financial instruments encompass equities, corporate and government bonds, money market instruments, fund units, and emissions allowances.

Open to UK-based firms of all sizes and development stages—including both existing financial institutions and new market entrants—the DSS invites applications until approximately March 2027. This timeframe allows regulators and participating firms to prepare for a potential transition to a new permanent regime, contingent upon the successful implementation of the new technologies.

In conjunction with the DSS launch, the FCA and the Bank of England published Policy Statement PS24/12, outlining the final policy approach and addressing industry feedback. Per the Policy Statement, several targeted changes have been made following consultation. These include extending the scope to incorporate non-pound sterling-denominated assets and adopting a more flexible method for setting firm-specific limits during the go-live stage by introducing limit ranges instead of fixed limits.

Additional adjustments involve reducing the minimum capital requirement for a Digital Securities Depository (DSD) to six months of operating expenses, down from the initially proposed nine months. Clarifications have also been made regarding provisions related to securities settlement systems, aiming to simplify understanding and navigation of the DSS rules.

Firms interested in participating are advised to review the provided guidance and complete the online application process, ensuring adherence to the outlined requirements. Upon submission, applications will be shared with both regulators, and further information may be requested as part of the evaluation.

The DSS represents a step forward in exploring the potential of blockchain and other emerging technologies within the UK’s financial markets. By facilitating innovation while safeguarding “financial stability” and “market integrity,” the initiative aims to contribute to a safe, sustainable, and efficient financial system.

However, it’s important to note that the UK’s focus on DLT does not necessarily mean it intends to promote the decentralized ethos that engulfs Web3.

Conclusion:

As the UK continues to pave the way for innovation in the financial sector through initiatives like the Digital Securities Sandbox, it’s clear that the future of finance is intertwined with emerging technologies such as distributed ledger technology. By providing a controlled environment for firms to test and implement DLT applications, the UK aims to position itself as a global leader in financial innovation, fostering investment opportunities and sustainable growth in the process.

With the DSS set to run until December 2028, there is ample time for UK-based firms to explore the possibilities of tokenized securities and their potential impact on traditional financial markets. By embracing new technologies and adapting regulations to accommodate them, the UK is demonstrating its commitment to staying at the forefront of financial evolution.

For more trending news articles related to DeFi and the ever-changing landscape of digital finance, be sure to check out DeFi Daily News for the latest updates and insights.



Source link

Tags: AimsDigitalIntegrityMarketsafeguardsecuritiesTrial
ShareTweetShare
Previous Post

Why Would We NOT File For Bankruptcy Because of This??

Next Post

Unprecedented displacement crisis caused by Israel’s conflict with Lebanon

Next Post
Unprecedented displacement crisis caused by Israel’s conflict with Lebanon

Unprecedented displacement crisis caused by Israel's conflict with Lebanon

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

No Result
View All Result
  • Trending
  • Comments
  • Latest
rewrite this title SEI Leads Crypto Market With 43% Weekly Surge – alt=

rewrite this title SEI Leads Crypto Market With 43% Weekly Surge – $0.5 Reclaim In The Horizon?

June 28, 2025
rewrite this title ‘FIFA Rivals’ Review: Should You Play This NFT Soccer Game? – Decrypt

rewrite this title ‘FIFA Rivals’ Review: Should You Play This NFT Soccer Game? – Decrypt

June 28, 2025
rewrite this title High Season, High Stakes: Navigating Summer Risks in Property Management

rewrite this title High Season, High Stakes: Navigating Summer Risks in Property Management

June 27, 2025
rewrite this title with good SEO Bitcoin Could Explode On Bessent’s 0 Billion Deregulation Shock

rewrite this title with good SEO Bitcoin Could Explode On Bessent’s $250 Billion Deregulation Shock

May 28, 2025
Mastering Crypto Mining: A Step-By-Step Guide

Mastering Crypto Mining: A Step-By-Step Guide

September 12, 2024
CRYPTO IS DUMPING DUE TO THIS… What Comes Next?

CRYPTO IS DUMPING DUE TO THIS… What Comes Next?

June 13, 2025
rewrite this title Vitalik Buterin says pluralistic ZK digital IDs are the ‘best realistic solution’ to preserve privacy

rewrite this title Vitalik Buterin says pluralistic ZK digital IDs are the ‘best realistic solution’ to preserve privacy

June 29, 2025
rewrite this title and make it good for SEO4 Signs Stagflation Could Be Coming in 2025

rewrite this title and make it good for SEO4 Signs Stagflation Could Be Coming in 2025

June 29, 2025
rewrite this title Spot Bitcoin ETFs Add 1,430 BTC Daily As AUM Head For 1.2 Million BTC Mark – Analyst

rewrite this title Spot Bitcoin ETFs Add 1,430 BTC Daily As AUM Head For 1.2 Million BTC Mark – Analyst

June 29, 2025
rewrite this title and make it good for SEO Chainlink Momentum Wavers, XRP ETF Spikes, BlockDAG Drops 100M BDAG in Airdrop

rewrite this title and make it good for SEO Chainlink Momentum Wavers, XRP ETF Spikes, BlockDAG Drops 100M BDAG in Airdrop

June 29, 2025
rewrite this title The 6 Doomsday Scenarios That Keep AI Experts Up at Night – Decrypt

rewrite this title The 6 Doomsday Scenarios That Keep AI Experts Up at Night – Decrypt

June 29, 2025
rewrite this title Ethereum Transactions: Why They Get Stuck and How to Fix Them

rewrite this title Ethereum Transactions: Why They Get Stuck and How to Fix Them

June 29, 2025
DeFi Daily

Stay updated with DeFi Daily, your trusted source for the latest news, insights, and analysis in finance and cryptocurrency. Explore breaking news, expert analysis, market data, and educational resources to navigate the world of decentralized finance.

  • About Us
  • Blogs
  • DeFi-IRA | Learn More.
  • Advertise with Us
  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2024 Defi Daily.
Defi Daily is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • Altcoins
    • DeFi-IRA
  • DeFi
    • NFT
    • Metaverse
    • Web 3
  • Finance
    • Business Finance
    • Personal Finance
  • Markets
    • Crypto Market
    • Stock Market
    • Analysis
  • Other News
    • World & US
    • Politics
    • Entertainment
    • Tech
    • Sports
    • Health
  • Videos

Copyright © 2024 Defi Daily.
Defi Daily is not responsible for the content of external sites.