In the context of the United Kingdom’s diminished equity markets, the Economist recently ran an article: “War on Paper”, which details Britain’s ongoing efforts to modernise its shareholding system by eliminating paper-based share certificates. Despite paper shares making up only about one percent of FTSE 350 stocks, they generate significant administrative burdens, with custodian banks receiving an estimated two tonnes of paper daily. Efforts to digitise shareholding are led by the Digitisation Taskforce, which proposes ending the issuance of new paper certificates and fully integrating retail ownership into an electronic central securities depository (CSD).

Proponents of full digitisation suggest that it will enhance efficiency, reduce costs, and increase retail participation in the stock market, as seen in Sweden. Meanwhile, other countries, including India, Japan, France, and the Netherlands, have already abolished paper-based shareholding.

While the article focused on digitising public market shareholding, its arguments support a broader trend: employee shareholding is increasingly facilitated by digital platforms beyond traditional stock markets. Private company equity platforms like Vestd and others enable employees to hold, manage, and trade shares in private companies without requiring paper certificates. Such platforms streamline ownership structures, allowing startups and privately held firms to distribute equity more efficiently. Employee share ownership plans (Esops) are now commonly managed via digital platforms, reducing paperwork and improving transparency.

Private companies, startups, and even firms leveraging blockchain are adopting digital-first approaches, making share ownership more accessible, cost-effective, and efficient. The shift away from paper is not just about stock markets—it's about modernising ownership structures across all forms of equity.

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