Regulation · Regime · United Kingdom · Sandbox or pilot regime · Bank of England
Digital Securities Sandbox (UK)Updated 14 Oct 2026
A Bank of England and FCA regime that lets firms run digital securities depositories and trading venues under modified rules, moving through gated approvals towards live services. HSBC became the first entrant cleared to provide live depository services in July 2026, followed by ClearToken CSD in September 2026. The sandbox runs until January 2029 unless extended.
In force · effective 8 Jan 2024
Key points
- Firms move through gates: Gate 1 (testing, no live activity), Gate 2 (go-live with real digital securities under initial limits), Gate 3 (scaling towards full authorisation) and Gate 4 (a possible permanent regime outside the sandbox).[1]
- Eligible instruments include equities, corporate and government bonds, money market instruments, fund units and emissions allowances; derivatives and unbacked cryptocurrencies are out of scope.[1]
- Live activity is capped by limits calibrated by asset type.[1]
- As of 9 October 2026, 17 firms had passed Gate 1 and two (HSBC Bank plc and ClearToken CSD) had passed Gate 2.[2]
What it covers
EquityDebt securityFund interestListed equitiesPrimary issuanceSecondary trading
Timeline
- 8 Jan 2024 · In forceDigital Securities Sandbox regulations (SI 2023/1398) come into force.[3]
- 12 Dec 2024 · AmendedFirst Gate 1 approval (ClearToken CSD).[2]
- 13 Jul 2026 · AmendedFirst Gate 2 (go-live) approval, for HSBC Bank plc.[2]
- 18 Sep 2026 · AmendedClearToken CSD passes Gate 2.[2]
- 8 Jan 2029 · Expired · upcomingSandbox regulations cease to have effect unless HM Treasury extends them.[3]
Instruments
- The Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023 (SI 2023/1398)Statutory instrument (secondary legislation) · In force · 8 Jan 2024
Permissions granted under it
- Digital Securities Sandbox Gate 2 approval notice: ClearToken CSD Limited (Digital Securities Depository)ClearToken
- Digital Securities Sandbox Gate 1 approval notice: Euroclear UK & International LimitedEuroclear
- Digital Securities Sandbox Gate 2 approval notice: HSBC Bank plc (Digital Securities Depository)HSBC
- Digital Securities Sandbox Gate 1 approval notice: J.P. Morgan Securities plcJ.P. Morgan
- Digital Securities Sandbox Gate 1 approval notice: LSEG B3 LimitedLondon Stock Exchange Group
- Digital Securities Sandbox Gate 1 approval notice: Tradeweb Europe LimitedTradeweb
Deployments operating under it
| Deployment | Status | Assets | Use cases | Last reviewed |
|---|---|---|---|---|
| ClearToken CSD Digital Securities Depository (CT Register)Updated 26 Oct 2026 ClearToken | Announced | Reviewed 13d ago | ||
| UK Digital Gilt Instrument (DIGIT) pilotUpdated 15 Oct 2026 HSBC Orion | Announced | Reviewed 24d ago |
Likely relevant to
| Deployment | Status | Assets | Use cases | Last reviewed |
|---|---|---|---|---|
| Baillie Gifford Enhanced Yield Fund (BAGEY)Updated 6 Nov 2026 BNY | Live (limited) | Reviewed 13d ago | ||
| BlackRock ICS money market funds, tokenised share classes (Kinexys, Ethereum)New J.P. Morgan | Live (limited) | Reviewed 22d ago | ||
| HSBC Orion digital bond issuanceUpdated 17 Oct 2026 HSBC Orion | Live (limited) | Reviewed 14d ago | ||
| LSEG Digital Markets Infrastructure for private fundsUpdated 28 Oct 2026 London Stock Exchange Group | Live (limited) | Reviewed 21d ago |
Sources
- [1]Digital Securities Sandbox — Bank of England. Accessed 14 Oct 2026.A
- [2]Digital Securities Sandbox dashboard — Bank of England. Accessed 14 Oct 2026. Page last updated 9 October 2026..A
- [3]The Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023 (SI 2023/1398) — legislation.gov.uk (The National Archives), 14 Dec 2023. Accessed 12 Oct 2026. Dates as recorded on uk-dss-regulations-2023, from this page..A
- [4]Update on the Digital Gilt Instrument (DIGIT) pilot issuance — HM Treasury, 16 Jul 2026. Accessed 11 Oct 2026.A