"The government is also setting up a new group, the Dematerialisation Market Action Taskforce (DEMAT), to co-ordinate the UK's move away from paper-based share certificates. Tech suppliers are also being invited to bid to take part in the government's Digital Gilt Instrument (DIGIT), a platform to issue sovereign debt, Rigby is reported to have said. The range of initiatives underlines the complexity of migrating the financial system from the manual, paper-based systems that have been in use for centuries to ones that are fully digital."
"In July, the government set out the arguments for change in its Wholesale Financial Markets Digital Strategy policy paper, saying today's financial processes are slow, costly, and rely on manual systems, which together stifle financial innovation. Adopting blockchain Distributed Ledger Technology (DLT) would, the paper argued, allow financial assets to exist as tokens on shared ledgers, overhauling markets by lowering costs, dramatically speeding up transactions, and increasing transparency."
The UK government will appoint a digital markets champion to coordinate the Bank of England, Treasury, and FCA towards a common framework for digitising financial markets. A new Dematerialisation Market Action Taskforce (DEMAT) will coordinate the move away from paper share certificates. Tech suppliers are being invited to bid for the Digital Gilt Instrument (DIGIT) to issue sovereign debt via digital platforms. Current financial processes remain slow, costly, and manual, constraining innovation. Tokenisation using blockchain Distributed Ledger Technology promises lower costs, faster transactions, real-time data sharing, and greater transparency. The UK faces competition from EU, US, and Swift initiatives and risks falling behind.
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