A key step forward: digitising paper shares in the UK

We recently released a new research paper, in collaboration with Thinks Insight & Strategy, that highlights a major challenge and opportunity for the UK’s capital markets: around 4.7 million UK adults – 9% of the population - still hold paper share certificates and most are unlikely to digitise these before the 2027 deadline.

Digitisation isn’t just a technical upgrade. It’s about making markets more efficient, accessible and resilient. The Digitisation Taskforce Final Report sets out a staged approach towards a fully intermediated digital shareholding system, aligning with how today’s markets operate.

With almost all FTSE 350 share capital already held digitally in CREST, moving to a unitary register will simplify ownership structures, reduce administrative burdens and improve transparency across the market.

The research shows that:

• only a third of paper shareholders plan to digitise before 2027
• many simply haven’t got around to it or don’t know how
• very few cite cost savings or voting access as reasons to stay with paper 

This is where Euroclear can help. By working closely with issuers, brokers and intermediaries, we can remove friction from the process - through clearer guidance, transparency on costs and assisted onboarding. It’s a practical role we’re ready to play.

Not all paper shareholders are the same. Our research identifies three distinct groups where tailored communications will be key.

• Anchored sceptics: older, digitally cautious investors who value tangibility but know change is coming.
• Passive holders: low-engagement investors who need simple, bite-sized communications.
• Digital navigators: younger, digitally confident investors who are likely to act early but still need clarity.

For issuers and intermediaries, understanding these profiles is essential to avoid a last-minute rush and ensure a positive investor experience.

The move to dematerialised shares is a market-wide effort. By working together - issuers, brokers, registrars, regulators and infrastructure providers - we can deliver a system that reflects how today’s markets operate.

Across Euroclear, we are committed to supporting this transition. We are accelerating settlement cycles, improving data quality and driving the shift from paper to dematerialised shares. These changes are designed to make the process simpler, more transparent and more resilient for everyone involved.

However, success depends on collaboration across the industry. The sooner we act, the smoother the journey will be.