The UK experience in supporting digital bonds development with regulatory sandboxes
Pan Zhou
Post-Doctoral Research Center. China Central Depository & Clearing Co., Ltd.
DOI: https://doi.org/10.59429/bam.v7i2.10520
Keywords: Digital bonds; Regulatory sandbox; Financial market infrastructure; UK
Abstract
The UK has a well-developed bond market and a leading fintech industry, but it started relatively late in the field of digital bonds. To support the development of digital bonds in the UK, the country established a Digital Securities Sandbox(DSS). The DSS is characterized by its financial market infrastructure-ledding approach and emphasis on substantial regulatory exemptions. Under the DSS, the UK has vigorously promoted the pilot issuance of digital gilts, effectively enhancing the global status of UK digital bonds. Drawing on the UK’s experience, it is advisable to set up a regulatory pilot for digital securities, led by FMI, to support the development of digital bonds in China in terms of legal frameworks, regulatory policies, technical standards, and industry rules, thereby consolidating the leading position in this field.
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