The EU DLT Pilot Regime provides a regulatory sandbox to test and facilitate the use of DLT-based financial instruments, although currently there are no active participants. 

Established financial institutions and fintech startups have several alternatives that can be used to test or implement DLT-based use cases.

Depending on the willingness and ability to engage with non-EU regulatory frameworks, different  options are available. Within the EU, EBSI may offer an alternative to the DLT Pilot Regime. For financial institutions with a more global footprint, the UK DSS or Liechtenstein, Switzerland and Abu Dhabi sandboxes might offer interesting solutions.

There is no one-size-fits-all sandbox. When choosing a sandbox, institutions must carefully weigh the use case, financial instruments involved and other criteria outlined in this report by Capco and the  Austrian Blockchain Center.