Digitalisation of UK Capital Markets and Tokenised Bonds

This report is a comprehensive guide on the digitalisation of UK capital markets, focusing on digitalised financial market infrastructure and the tokenisation of bonds. It outlines the transformative potential of distributed ledger technology (DLT) and the steps necessary for the UK to maintain its status as a leading global financial centre. The report discusses the importance of collaboration among industry, government, and regulators to facilitate innovation and create a supportive environment for digitalisation. It highlights the potential economic benefits of DLT, including significant cost savings in global clearing and settlement. The report also emphasizes the need for regulatory clarity and strategic investment to enhance the adoption of digital assets and to keep pace with international competition. Additionally, it provides recommendations for making the Digital Securities Sandbox successful and effectively digitalising the bonds market, ensuring that the UK capital markets can thrive in the evolving financial landscape.