A marketplace combines tokenised securities trading, lending and settlement when one authorised venue admits the instrument, runs secondary trading, hosts repo against it, and holds the assets in custody. BPX is our FCA-authorised UK marketplace built on that model, operating as a Multilateral Trading Facility and Alternative Investment Fund Manager, with Digital DVP settlement in development.
What does a marketplace need to combine trading, lending and settlement?
A marketplace that combines tokenised securities trading, lending and settlement needs six working layers under one regulatory perimeter: admission of the instrument, secondary trading, repo, custody, settlement and market data. BPX covers these through its FCA-authorised MTF and AIFM, with Digital DVP settlement as the layer we are working toward.
The table maps each layer to what BPX provides.
| Layer | What the venue has to do | What BPX provides |
|---|---|---|
| Admission | Admit the instrument before anyone trades or pledges it | Issuance and admission to secondary and repo markets |
| Secondary trading | Execute institutional orders on a regulated venue | Execution through our regulated MTF |
| Lending (repo) | Accept eligible collateral for short-term liquidity | Repo against investment funds and real-world assets |
| Custody | Safeguard and administer the assets | Custody and client money |
| Settlement | Settle trades inside the same ecosystem | Trade, lend, settle and custody in one marketplace, with Digital DVP settlement in development |
| Market data | Publish transparency data and offer connectivity | Pre-trade and post-trade transparency, market data, API market access |
Many venues cover one or two of these layers well. The combination is what lets a holder trade a tokenised fund on Monday and pledge the same fund as collateral on Tuesday, without moving it to a different venue.
How BPX joins trading, lending and settlement in one venue
BPX was authorised by the Financial Conduct Authority on 26 June 2025 to operate as a Multilateral Trading Facility and an Alternative Investment Fund Manager. That pairing is the reason issuance, trading and lending sit together instead of in separate vendor relationships.
Issuers use our fund management and AIFM services to structure and issue funds and securities, traditional or tokenised. Our issuance and admission service then admits the instrument to our secondary market and to our repo market. Fund managers, real-asset sponsors and institutional issuers are the customers it serves, and it is built for faster time-to-market and a smoother move from traditional to tokenised issuance.
Members trade through our trading services, which provide execution on the regulated MTF with settlement and custody integrated behind it. Our primary market gives investors direct access to new issues, private credit opportunities and tokenised securities.
Lending is built into the same venue. Member institutions pledge eligible investment funds and real-world assets as collateral to raise short-term liquidity without triggering a sale or a tax event. Contractual rights and obligations are embedded in composable workflows, so a static holding becomes mobilised collateral. We cover the mechanics in detail in our post on which platforms facilitate repo using tokenised money market funds.
Custody completes the lifecycle. We provide secure safekeeping, administration and management of digital assets and client money inside the same framework.
How does the UK Digital Securities Sandbox shape these venues?
The UK Digital Securities Sandbox allows trading-venue and central securities depository activities to be combined in a single hybrid entity. That is the structure a marketplace needs to trade, lend and settle tokenised securities together. BPX has been approved into Gate 1 and is the first hybrid trading venue accepted into the sandbox.
The Bank of England and Financial Conduct Authority state in guidance dated 30 June 2026 that a hybrid operator must complete both the Bank of England and FCA processes to obtain the necessary permissions and approvals. Two regulators, two processes, one entity. That requirement is the reason few venues can claim all three functions.
The Bank of England explains that Gate 1 is a testing stage and not permission for live business. After Gate 2, real securities issued within the sandbox can be traded, settled and used in repurchase agreements. We describe our position precisely: Gate 1 approval is a regulatory milestone, and our FCA authorisations as an MTF and AIFM are separate from it.
What should you ask any venue before using it for repo?
Before using any venue for repo against tokenised securities, ask whether the instrument is admitted to that venue's repo market, who holds custody, what permissions the operator holds, and how settlement works at its current stage. These questions apply to every marketplace, ours included.
- Admission: Has the specific fund or security been admitted to the repo market, and not only to a trading venue?
- Permissions: Which FCA or Bank of England authorisations does the operator hold, and which sandbox gate, if any, has it reached?
- Custody: Who safekeeps the collateral, and how is client money held?
- Wallets: Do counterparties need an eligible wallet, and what constraints apply to it?
- Documentation: Does the repo documentation match market standards?
- Settlement: Is settlement digital delivery versus payment today, or in development?
On the last point our answer is direct: BPX is working toward Digital DVP settlement as part of our future-ready infrastructure for traditional and tokenised securities. Our membership onboarding walks institutions through wallets, documentation and eligibility, and our markets overview shows how trading and membership fit together.
Frequently asked questions
Can institutions outside the UK use BPX?
The services and products on our site are intended for residents of the UK only. They are not aimed at or intended for use by residents of any other jurisdiction. Institutions based in the UK can apply for BPX market membership, and the membership pages set out how onboarding works.
What data and connectivity do BPX members receive?
Members can use pre-trade transparency, post-trade transparency, market data and API market access. Pre-trade transparency data is available in a machine-readable format. We also maintain a document library and a reference library covering the instruments and rules of our markets.
Does BPX only support tokenised assets?
No. BPX delivers services across both traditional and tokenised securities, so issuers and members can work with either form. Our secondary market, repo market and custody services apply to both, and our issuance service supports a transition from traditional to tokenised issuance. Our post on institutional digital securities issuance and secondary trading in the UK goes deeper.
If you are weighing venues for tokenised securities trading, repo or settlement, or you are an issuer deciding where a fund should be admitted, send us your question or requirement using the short form below and we will reply with how BPX would handle it.