UK Finance has released a report which sets out three key missions “to accelerate the digital transformation of the UK’s capital markets.” The report ‘Unlocking the power of securities tokenization’ , produced in conjunction with Oliver Wyman , looks at “how securities tokenization (the digital representation of real financial assets) will transform capital markets and international banking infrastructure.” The tokenization of securities could “improve the financial system’s operational efficiencies.” However, these benefits “have yet to be realized at scale as the markets, globally and in the UK , are in their infancy.” Currently, tokenized issuances are “still a fraction of traditional securities issuance.” Key findings: Based on work undertaken “with the largest banks, financial market participants, investors government, regulators and other trade bodies, alongside detailed research on global innovations to date,” the report finds: The UK has built positive momentum around tokenisation from a legal and regulatory perspective, including some flagship legislative initiatives. This includes via the Financial Services and Markets Act which allows for HM Treasury to introduce financial market infrastructure (FMI) regulatory sandboxes for distributed ledger technology (DLT) projects. Strong work has also been undertaken by our Law Commission and UK Jurisdiction Taskforce. There has been minimal […]
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