The UK government has appointed tokenization platform HSBC to support a pilot issuance of digital government bonds, known as ‘gilts’, in the latest step in its bid to modernize sovereign debt markets using blockchain technology.
HM Treasury has appointed HSBC Orion to facilitate the pilot issuance of the Digital Gilt Instrument (DIGIT), According to until Thursday’s announcement.
Treasury published DIGIT pilot update in July 2025 outlining plans to explore blockchain applications in UK sovereign debt issuance and support the development of a national tokenization infrastructure.
“We want to attract investment and make the UK the best place to do business,” said Lucy Rigby, UK Economy Secretary at the Treasury, commenting on the appointment of DIGIT HSBC Orion. She added that the pilot would aid the UK explore how to utilize distributed ledger technology (DLT), augment efficiency and reduce costs for businesses.
Key objectives and features of the DIGIT remote control
The goal of the DIGIT pilot is to enable digitally native, short-term government bonds to operate within a digital securities sandbox (DSS).
The pilot aims to support secondary market development and wider availability through on-chain settlements, while operating independently of the UK Government’s main debt management program.
“This is exactly the type of financial innovation we need to keep the UK at the forefront of global capital markets. I look forward to working with HSBC and others to deliver DIGIT,” Rigby said.
HSBC has issued $3.5 billion in digital bonds globally
Since its launch in 2023, HSBC Orion has been doing just that turned on issuance of at least $3.5 billion of digital bonds globally, including the European Investment Bank’s first sterling digital bond and a $1.3 billion multi-currency bond issued by the Hong Kong government.
“The UK is our home market and the sixth largest economy in the world,” said Patrick George, global head of securities markets and services at HSBC. “HSBC is delighted to support the continued growth of the gold market, market innovation and the development of the wider UK economy,” he added.
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In addition to appointing HSBC Orion as platform provider for DIGIT, the UK government has also appointed global law firm Ashurst to provide legal services for the pilot.
“Our team brings deep expertise in digital asset transactions and we look forward to working with HSBC and supporting the government in taking this transformative step in UK capital markets,” said Etay Katz, digital assets director at Ashurst.
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