The Danish Financial Supervisory Authority (Danish FSA) is one of the first EU regulators to start work on the EU’s DLT Pilot Regime. A group of organizations led by Deon Digital Denmark will work on issuing tokenized green bonds within the Danish FSA sandbox, FT Lab.
“DLT is basically ‘just’ a way of keeping a register. However, the technology also enables the processes for carrying out and settling trades with securities to be automated to a greater extent, while the transparency surrounding the trades can be increased at the same time,” said Tobias Thygesen, who heads the FT Lab.
“The technology therefore has the potential to make the capital markets more efficient, but probably not without new risks. This is one of the reasons why the new European DLT pilot regulation has been introduced; to create a safe space in which the new technology can be tested.”
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