U.K. to Issue First Digital Sovereign Bond on HSBC Platform by Early 2027

The U.K. plans to issue its first digital sovereign bond by early 2027, CoinDesk reported. The move would make the country the first G7 nation to place government debt on a distributed ledger. Chancellor Rachel Reeves announced the timeline during her annual Mansion House speech.

The initial sale will occur outside the government’s conventional gilt-financing program, with further issuance planned afterward. The Digital Gilt Instrument, known as DIGIT, will be a sterling-denominated security issued on HSBC’s Orion platform. It will operate inside the Bank of England and Financial Conduct Authority’s Digital Securities Sandbox to test reduced settlement times and costs.

The Treasury announced the pilot in 2024. HSBC was appointed to run the platform in February after issuing more than $3.5 billion in digital bonds through its Orion blockchain. Bank of England Governor Andrew Bailey said the central bank plans to make the bond eligible as collateral in market operations.

The Treasury has not disclosed the bond’s size, maturity, coupon, investor eligibility or settlement asset.