The UK government will launch a sterling-denominated digital gilt on HSBC’s Orion platform to test blockchain-based settlement efficiency.
The UK will issue its first digital sovereign bond by early 2027, becoming the first G7 nation to place government debt on a distributed ledger. The £3.5 billion pilot, dubbed DIGIT, will launch on HSBC’s Orion platform within the Bank of England and FCA’s Digital Securities Sandbox.
The initiative aims to reduce settlement times, reconciliation work, and operating costs. The bond will be eligible as collateral in central bank market operations, allowing banks to use it for funding transactions. The Treasury announced the pilot in 2024, with further issuance planned after the initial sale.
HSBC was appointed to run the platform in February, following its experience in digital bond issuance. The move aligns with broader efforts to modernize financial market infrastructure using blockchain technology.