The Bank of England (BOE) and the Financial Conduct Authority (FCA) are targeting autumn 2024 for the first phase of the Digital Securities Sandbox (DSS), created to facilitate the adoption of digital assets in financial markets in the UK.

Companies operating in the UK will now have the chance to test new technologies such as blockchain and distributed ledger networks thanks to the Digital Securities Sandbox. However, unsupported crypto assets and derivative contracts will be excluded.


FCA Executive Director Sheldon Mills said in a statement that the Digital Securities Sandbox aims to shape regulations by providing a more effective and collaborative way to test regulatory changes. He also emphasized that this initiative will help strengthen the UK's leading position as a financial centre.

The Digital Securities Sandbox differs from a similar initiative launched in August 2023 to provide support to firms in the early stages of the Digital Sandbox developed by the FCA. Company applications are due in the fall Applications for the landmark Digital Securities Sandbox are planned to open in the fall of 2024. Once applications are accepted, applicants will participate in the sandbox initiative at an early stage.

Sasha Mills, Executive Director of BOE Financial Market Infrastructure, stated that the Digital Securities Sandbox is an important tool for learning to safely adapt to changes in financial market processes. Mills also stated that DSS will help the UK financial system benefit from private sector innovation by enabling future innovation and competitive business models.

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