The UK government has selected HSBC’s tokenization platform to support a pilot issuance of digital government bonds, or “gilts,” as part of its broader effort to modernize sovereign debt markets through blockchain technology.
HM Treasury confirmed on Thursday that HSBC Orion will facilitate the issuance of the Digital Gilt Instrument (DIGIT).
The Treasury first outlined the DIGIT pilot in a July 2025 update, detailing plans to explore blockchain applications in UK sovereign debt issuance and to foster the growth of domestic tokenization infrastructure.
Commenting on the appointment, Economic Secretary to the Treasury Lucy Rigby said the initiative is aimed at attracting investment and reinforcing the UK’s position as a leading place to do business. She added that the pilot will allow the government to assess how distributed ledger technology (DLT) can improve efficiency and lower costs across financial markets.
Objectives and Structure of the DIGIT Pilot
The DIGIT initiative will focus on issuing digitally native, short-term government bonds within the UK’s Digital Securities Sandbox (DSS).
Designed to promote secondary market activity and expand investor access, the pilot will incorporate onchain settlement while remaining separate from the government’s primary debt issuance program.
“This is precisely the type of financial innovation required to keep the UK at the forefront of global capital markets,” Rigby said, adding that she looks forward to collaborating with HSBC and other stakeholders to deliver the DIGIT initiative.
HSBC’s Track Record in Digital Bond Issuance
Since launching in 2023, HSBC Orion has facilitated at least $3.5 billion in digitally native bond issuances worldwide. These include the European Investment Bank’s inaugural digital sterling bond and a $1.3 billion-equivalent, multi-currency digital bond issued by the Hong Kong government.
“The UK is one of our home markets and the world’s sixth-largest economy,” said Patrick George, HSBC’s global head of markets and securities services. He added that HSBC is pleased to support the ongoing evolution of the gilt market, drive financial innovation and contribute to the growth of the broader UK economy.
In addition to selecting HSBC Orion as the technology platform for the DIGIT pilot, the UK government has appointed international law firm Ashurst to provide legal advisory services for the initiative.
“Our team has extensive experience in digital asset transactions, and we look forward to partnering with HSBC and supporting the government as it undertakes this transformative step for UK capital markets,” said Etay Katz, Ashurst’s head of digital assets.
