AFME has worked extensively on helping scale capital markets in Europe using Distributed Ledger Technology (DLT). DLT-based markets hold the promise of enabling more efficient, connected, resilient, innovative and accessible capital markets. Realising this potential requires coordinated action between public and private stakeholders, and AFME has actively contributed in several ways:
- AFME has published policy roadmaps for both the EU and UK, outlining the key policy steps to scale DLT markets. These include establishing permanent regulatory frameworks that accommodate at-scale, DLT-based and distributed (network-based) settlement systems. Developing DLT-linked central bank money solutions is also key to enabling risk-free settlement of DLT-based transactions.
- In addition, AFME promotes broader DLT ecosystem growth, having published a step-by-step roadmap to support DLT-based bond issuance by EU and UK sovereigns and public-sector agencies. As such, AFME is closely involved in developments taking place towards the issuance of a UK Digital Gilt (DIGIT). AFME also supports national strategies for DLT adoption in capital markets in Europe, and offers education and support to corporates to help them better understand the possibilities of DLT for enhancing financing options.
