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Economy · Government bonds · Digital assets · Financial markets

UK digital gilt (DIGIT): the government's first bond on a distributed ledger

DevelopingBy Updated Verified · Confidence: highVersion 3 · See all changes

A glowing pound sign inside a coin shape on a smartphone screenIllustration
Illustration, not a photo of the event. A pound sign on a phone screen, used here to illustrate digital government debt. It does not show the DIGIT platform. Credit: Storyblocks (Storyblocks licence).
Current status: Developing

Six banks have been named to run the pilot sale, and talks with investors can now begin.

The UK government is preparing DIGIT, its first government bond issued and settled on a distributed ledger. HSBC's Orion platform will host it inside the Bank of England's Digital Securities Sandbox, and in October the Treasury named six banks to manage the sale. The pilot issuance is expected by the first quarter of 2027.

Watch

Video by Stories of Record, from the sources below. UK Digital Gilt (DIGIT) explained: the first government bond on a distributed ledger. (2:31) Credit: Stories of Record (all rights reserved). Transcript (captions file).

Latest update

The Treasury named six banks as joint lead managers for the pilot sale, completing procurement.

What changed in this version

Version 3, : Added a 2.5-minute video explainer, also published on YouTube. The story text is unchanged.

Key facts

  • The Treasury chose HSBC's Orion platform to host the DIGIT pilot after a competitive tender, and hired the law firm Ashurst for legal work. [1]
  • The Treasury appointed Barclays, HSBC, Lloyds, Morgan Stanley, NatWest and RBC Capital Markets as joint lead managers for the DIGIT pilot sale. [4] [5]
  • The pilot issuance is expected by the first quarter of 2027. [4] [5]
Diagram: HM Treasury appoints six lead managers (Barclays, HSBC, Lloyds, Morgan Stanley, NatWest, RBC Capital Markets), who run the sale onto HSBC Orion, the issuer depository inside the Digital Securities Sandbox run by the Bank of England and FCA. A planned link connects HSBC Orion with LSEG's investor depository, and a London Stock Exchange main market listing is expected.
Graphic by Stories of Record, from the sources below. How the DIGIT pilot is set up. Dashed parts are planned or expected. Credit: Stories of Record (all rights reserved).
Timeline: HSBC Orion chosen as platform on 12 February 2026; HSBC passes Gate 2 of the sandbox on 13 July; Mansion House announcement on further issuances on 14 July; six lead managers named on 6 October; pilot issuance expected by the first quarter of 2027.
Graphic by Stories of Record, from the sources below. The steps towards the DIGIT pilot so far. Credit: Stories of Record (all rights reserved).

Timeline

  1. The Treasury appointed Barclays, HSBC, Lloyds, Morgan Stanley, NatWest and RBC Capital Markets as joint lead managers for the DIGIT pilot sale. [4] [5]
  2. At Mansion House, the Chancellor said the government is preparing for possible further DIGIT issuances if the first one succeeds. [3]
  3. HSBC passed Gate 2 of the Digital Securities Sandbox, the first entrant cleared to run live digital securities depository services. [2] [3]
  4. The Treasury chose HSBC's Orion platform to host the DIGIT pilot after a competitive tender, and hired the law firm Ashurst for legal work. [1]

What is confirmed

  • HSBC passed Gate 2 of the Digital Securities Sandbox, the first entrant cleared to run live digital securities depository services. [2] [3]
  • At Mansion House, the Chancellor said the government is preparing for possible further DIGIT issuances if the first one succeeds. [3]
  • HSBC and LSEG signed a memorandum of understanding on a link between their digital depositories, so investors could hold DIGIT through either one. [3]
  • The government expects DIGIT to be listed on the London Stock Exchange's main market as part of the pilot. [3]
  • With the appointments the procurement is complete, and the government says talks with investors can now start. [4]
  • DIGIT will be a short-dated bond, issued on a platform inside the Digital Securities Sandbox, settled on-chain, and kept separate from the government's main borrowing programme. [4]

What remains unconfirmed

  • The government intends to change the law on the Digital Securities Sandbox to support DIGIT, but has set no date. [3]

Why it matters

The pilot tests whether distributed ledger technology can handle the issuance and settlement of UK government debt. The government says further digital issuances depend on how this first one goes.

What happens next

  • The pilot DIGIT bond is due to be issued by the end of the first quarter of 2027. [4]
  • DIGIT is expected to be listed on the London Stock Exchange's main market. [3]

Questions

What is DIGIT?

The Digital Gilt Instrument: a short-dated UK government bond that will be issued and settled on a distributed ledger as a pilot.

Which banks are managing the sale?

Barclays, HSBC, Lloyds, Morgan Stanley, NatWest and RBC Capital Markets.

Where will it be issued?

On HSBC's Orion platform, inside the Digital Securities Sandbox run by the Bank of England and the Financial Conduct Authority.

When will it be issued?

The government expects the pilot issuance by the first quarter of 2027.

Sources

  1. Update on the procurement for Digital Gilt Instrument (DIGIT) Pilot, GOV.UKOfficial (government)
    Accessed 7 October 2026.
  2. Digital Securities Sandbox Dashboard, Bank of EnglandOfficial (government)
    Accessed 7 October 2026.
  3. Update on the Digital Gilt Instrument (DIGIT) pilot issuance, GOV.UKOfficial (government)
    Accessed 7 October 2026.
  4. UK takes next step towards first digitally native government bond, GOV.UKOfficial (government)
    Accessed 7 October 2026.
  5. Economic Secretary to the Treasury speech for UK Digital Assets Week, GOV.UKOfficial (government)
    Accessed 7 October 2026.

People, places and organizations

organization
HM Treasury
organization
HSBC
organization
Bank of England
organization
London Stock Exchange Group
topic
Digital Securities Sandbox