Digital Security Sandbox to welcome collaboration between SEI and Ctrl Alt
SEI and Ctrl Alt Join UK's Digital Securities Sandbox to Pioneer Compliant Tokenization
SEI, the world's largest private credit fund administrator by assets, and Ctrl Alt have joined forces to explore the future of tokenized financial markets within a regulated framework. This collaboration is part of the UK's Digital Securities Sandbox (DSS) initiative, a joint venture between the Bank of England and the Financial Conduct Authority (FCA).
The DSS aims to provide a permissive yet supervised environment for financial market infrastructures using distributed ledger technology (DLT) to test new products and technologies. This regulatory relaxation allows participants to innovate without incurring the full scope of regulatory compliance upfront, while preserving investor protection and market integrity.
SEI and Ctrl Alt's involvement in the DSS is significant. SEI brings its vast experience in asset management, with a staggering $1.6 trillion in assets under management and administration, and a market capitalization of almost $9 billion. Ctrl Alt, on the other hand, offers deep expertise in financial structuring and blockchain technology, having tokenized over $325 million in assets and working with various financial institutions across jurisdictions.
The partnership will focus on two tokenization products: SPVS 3.0 and Funds 3.0. SEI is also investing in Ctrl Alt, and Ctrl Alt has applied to be a direct participant in the DSS alongside SEI.
Eight organizations, including Euroclear, have passed Gate 1 of the DSS, a preliminary step in the process. However, no organizations have been approved yet to start transacting in the DSS sandbox. This is an increase of five organizations compared to the last report in late January.
The DSS has a gated system for entrants, with each organization undergoing rigorous scrutiny to ensure compliance with regulatory standards. Entities that are already regulated may progress through approvals faster in the DSS.
Sneha Shah, Head of New Business Ventures at SEI, stated that tokenized solutions have the potential to enhance security, transparency, and efficiency in financial markets. This initiative marks a key step in integrating blockchain-based tokenization in mainstream finance under clear regulatory guidance in the UK.
References:
- SEI Press Release, "SEI and Ctrl Alt to Collaborate on Digital Securities within the UK's Digital Securities Sandbox", 2021. Link
- SEI, with its extensive experience in asset management and capital, partners with Ctrl Alt to explore the tokenized financial markets within the UK's Digital Securities Sandbox (DSS).
- The DSS, a collaboration between the Bank of England and the Financial Conduct Authority (FCA), offers a permissive yet supervised environment for financial institutions to test tokenization products and technologies.
- SEI and Ctrl Alt's collaboration focuses on two tokenization products, SPVS 3.0 and Funds 3.0, and aims to enhance security, transparency, and efficiency in financial markets.
- Ctrl Alt, known for its deep expertise in financial structuring and blockchain technology, has tokenized over $325 million in assets and works with various financial institutions across jurisdictions.
- The DSS has strict entry requirements, with organizations undergoing rigorous scrutiny to ensure compliance with regulatory standards, and only eight organizations, including Euroclear, have passed the initial Gate 1 of the DSS so far.
