Euroclear UK and International (EUI) plans to join the Digital Securities Sandbox (DSS), an initiative that relaxes some laws to support the trading and settlement of tokenized securities on blockchain. It’s a big win for the UK, given the EU’s similar DLT Pilot Regime has failed to attract the largest incumbent financial infrastructures.
CREST is the only UK authorized central securities depository (CSD) and is owned by Euroclear, with EUI settling around £1 trillion in transactions daily. Following Brexit, 13 foreign CSDs are also authorized in the UK, including five other Euroclear subsidiaries.
The Bank of England and the Financial Conduct Authority (FCA), which are running the sandbox, deserve credit for listening to feedback. The biggest criticism of the EU’s DLT Pilot Regime was that the limits were too small for large financial infrastructures. Hence, the Prague CSD is a participant, but Clearstream won’t take part.
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