The new bond will be launched on HSBC’s Orion platform within the BoE and FCA’s Digital Securities Sandbox to explore quicker settlement times and reduced costs.
By Francisco Rodrigues|Edited by Sheldon Reback Jul 15, 2026, 8:16 a.m. 1 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Chancellor of the Exchequer Rachel Reeves. (Yui Mok/WPA Pool/Getty Images)SummaryShow- The U.K. is set to launch its inaugural digital sovereign bond by early 2027, marking it as the first G7 country to utilize a distributed ledger for government debt.
- This gilt will be available on HSBC’s Orion platform, operating within the Digital Securities Sandbox of the BoE and FCA to evaluate faster settlement times and lower costs.
- Bank of England Governor Andrew Bailey indicated that the bond will be eligible for use as collateral in market operations, allowing banks to leverage it in central bank funding transactions.
The U.K. has announced plans to introduce a digital sovereign bond by early 2027, thereby becoming the first among the G7 nations to issue government debt using a distributed ledger technology.
Chancellor Rachel Reeves revealed this timeline during her annual Mansion House address to industry stakeholders, with intentions for additional issuances following the initial offering.
The proposed Digital Gilt Instrument, referred to as DIGIT, will be a government security denominated in sterling, issued on HSBC’s Orion platform, and will function within the Bank of England and Financial Conduct Authority’s Digital Securities Sandbox.
The Treasury had initiated a pilot in 2024 to assess the potential of blockchain technology to streamline settlement times, reduce reconciliation efforts, and lower operating expenses. HSBC was selected to manage the platform in February, having successfully issued over $3.5 billion in digital bonds via its Orion platform.
During the same event, Bank of England Governor Andrew Bailey stated that the central bank aims to make DIGIT eligible as collateral in its market operations, which could facilitate tokenized repurchase agreements and enable banks to utilize the bond in transactions with the central bank.
The Treasury has not yet provided details regarding the bond’s size, maturity, coupon rate, investor eligibility, or the asset for settlement. The initial offering will be separate from the traditional gilt-financing program of the government.
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Gate Leads Spot Market Share Gains as CEX Volumes Rise for First Time in Five Months
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CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
By CoinDesk ResearchJul 13, 2026CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
Why it matters:
CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
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