HM Treasury has appointed HSBC Orion to facilitate the issuance of a pilot Digital Gilt Instrument, marking the UK government’s latest effort to modernise sovereign debt markets using blockchain technology.
The DIGIT pilot will test digitally native, short-dated government bonds within the Digital Securities Sandbox, operating independently from the UK’s main debt management programme.
“We want to attract investment and make the UK the best place to do business,”
Said Lucy Rigby, UK Economic Secretary, to the Treasury.
Rigby added that the initiative would help the UK harness distributed ledger technology to enhance efficiency and reduce costs while supporting domestic tokenisation infrastructure.
Since launching in 2023, HSBC Orion has enabled at least $3.5 billion in digital bond issuances globally, including the European Investment Bank’s first digital sterling bond and a $1.3 billion-equivalent multi-currency bond from the Hong Kong government.
“The UK is a home market for us and the sixth largest economy in the world,”
Said Patrick George, HSBC’s global head of markets and securities services.
“HSBC is delighted to be supporting the continued development of the gilt market, market innovation, and the growth of the broader UK economy.”
He added.
Alongside HSBC’s appointment, the government selected global law firm Ashurst to provide legal services for the pilot as it advances efforts to position the UK at the forefront of digital capital markets innovation.