The U.K. authorities are launching a pilot project to issue digital gilts based on distributed ledger technology (DLT). The technological platform for the project will be provided by HSBC.
The U.K. Treasury appointed HSBC, the country’s largest bank, as the infrastructure provider for the pilot issuance of the Digital Gilt Instrument (DIGIT). The decision followed a competitive tender announced in October 2025.
The DIGIT project involves the issuance of short-dated gilts originally created in digital form. The placement will take place on HSBC’s Orion blockchain platform, operating within the local Digital Securities Sandbox (DSS) for digital securities. Settlement of transactions will be carried out directly in the digital environment, with operations recorded on a distributed ledger. Legal support for the pilot project will be provided by Ashurst.
Patrick George, Global Head of Markets & Securities Services at HSBC, emphasized that the bank intends to support the further development of the government bond market and the implementation of innovative solutions in the country’s financial sector.
Lucy Rigby, Economic Secretary to the Treasury, noted that the launch of DIGIT aims to attract investment and strengthen the country’s competitiveness as a global financial hub. According to her, the project will help assess how DLT solutions can improve operational efficiency, reduce corporate costs, and modernize the government debt market infrastructure.
The U.K. government expects the project to test the application of DLT solutions in the issuance and circulation of gilts, as well as accelerate the development of the national digital financial infrastructure and the formation of a secondary market.
DIGIT will also be implemented outside the core government debt management program and will become a key element of the government’s strategy for the digital development of wholesale financial markets.
