Consultation on the Digital Securities Sandbox
This government is consulting on the first financial market infrastructure sandbox, referred to as the ‘Digital Securities Sandbox’, which will enable digital securities to be tested and ultimately adopted across financial markets.
This consultation sets out HM Treasury’s proposed approach to delivering a Digital Securities Sandbox (DSS), which will be the first financial market infrastructure sandbox delivered under the powers granted as part of the Financial Services and Markets Act 2023. The DSS will facilitate the testing and adoption of digital securities across financial markets. Through the DSS, industry will be able to set up financial market infrastructures that utilise digital asset technology, which can perform a number of activities in relation to digital securities under a temporarily modified legislative and regulatory framework.
The consultation invites feedback from industry on the approach to the DSS, and seeks feedback on some further policy and legal issues.
It also invites respondents to formally express their interest in using the DSS, on the basis that conversations with potential applicants should begin as early as possible.
Responses to this consultation should be sent to digitalsecuritiessandbox@hmtreasury.gov.uk by 22 August.
Note that responses will by default be shared with the Bank of England and the Financial Conduct Authority. Responses should clearly indicate where they do not wish for responses to be shared, or if they would like them anonymised.