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Companies joining FCAs regulatory sandbox to use blockchain tech

Friday 6 July 2018 13:02 CET | News

The UK’s Financial Conduct Authority (FCA) has unveiled the 29 companies composing the fourth cohort of its regulatory sandbox.

More than 40% of them will be testing blockchain or distributed ledger technology (DLT) solutions, the financial regulator said for Coin Journal. Six are using DLT to automate the issuance of debt or equity, and two are using DLT to support the provision of insurance.

Blockchain startups and solutions that made it into the UK FCA’s fourth cohort include BlockEx, a platform that facilitates the issuance and manages the lifecycle of regulated bonds using DLT, Capexmove, a DLT-based solution for issuing tokenized debt, Etherisc, a service that uses smart contracts on a blockchain platform to provide fully automated, decentralized flight delay insurance, and 20|30, a DLT-based platform that allows companies to raise capital.

20|30 will be testing its platform, which enables the primary issuance of equity tokens using the Ethereum blockchain. The platform aims to be the regulated entity licensed to on-board companies to issue equity tokens. It will be fully compliant with UK regulations and will provide all necessary checks on investors and issuers.
Besides blockchain and DLT, other solutions that applied for the fourth cohort are using technologies that include geo-location technology, Application Programming Interfaces (APIs) and artificial intelligence.

The 29 companies were chosen out of 69 applications. Applications came from a diverse range of companies operating across the financial services sector including in areas such as consumer credit, automated advice and insurance. Tests will be conducted on a short-term and small-scale basis. The FCA will be working with each participant company to agree testing parameters and build in appropriate consumer safeguards.


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Keywords: Financial Conduct Authority, regtech, blockchain, tokens, DLT, regulatory sandbox, UK
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Countries: World