UK to Launch First Onchain Gilt DIGIT in 2027

Britain is preparing DIGIT, its first government bond issued using distributed ledger technology, as it seeks to connect the gilt market with tokenized finance. The security will be listed on the London Stock Exchange and operated through HSBC’s Orion platform. The project could provide digital markets with a high-quality sovereign benchmark while testing blockchain-based issuance, record-keeping and settlement within the UK’s established capital-markets framework.

HM Treasury said the inaugural DIGIT is scheduled for the first quarter of 2027, though the issue size, coupon and exact sale date have not been disclosed. The bond will use a dual digital securities depository structure designed to reduce dependence on a single platform and limit lock-in risk. One key element remains unresolved: without widely available onchain sterling, the market must still determine how to achieve delivery-versus-payment settlement before launch.