UK selects HSBC’s blockchain platform for digital gilt pilot
By Cygnus | 12 Feb 2026
Summary
The UK government has selected HSBC’s Orion blockchain platform to support its proposed Digital Gilt Instrument (DIGIT) pilot, marking a step toward modernising sovereign debt issuance using distributed-ledger technology. While tokenised bonds remain a small part of global capital markets, the initiative signals London’s ambition to integrate blockchain infrastructure into mainstream government financing.
London, Feb 12 — The UK government has selected HSBC’s blockchain infrastructure to support its pilot issuance of tokenised government bonds, marking a further step in Britain’s efforts to modernise sovereign debt markets using distributed-ledger technology.
HSBC confirmed that its Orion platform will underpin the UK’s proposed Digital Gilt Instrument (DIGIT) programme, an initiative announced in 2024 to explore how blockchain-based systems could improve efficiency, transparency and settlement processes in the gilt market.
A timeline for the first digital gilt issuance has not yet been disclosed.
Testing blockchain in sovereign debt markets
The DIGIT pilot is designed to assess whether distributed-ledger technology can streamline the issuance, settlement and lifecycle management of UK government bonds, potentially reducing operational complexity for financial institutions active in the gilt market.
While several jurisdictions have experimented with tokenised bond issuance in recent years — including pilot projects in Europe and Asia — digital sovereign debt remains at an early stage globally.
If the UK proceeds to live issuance, it would join a small group of advanced economies testing blockchain-based infrastructure in sovereign markets.
HSBC’s Orion platform has previously supported multiple digital bond transactions. According to the bank, the platform has facilitated more than $3.5 billion in tokenised bond issuance to date across sovereign, supranational, financial institution and corporate borrowers.
An HSBC executive said the bank welcomed the opportunity to support innovation in the UK gilt market.
Legal and structural framework
Alongside HSBC’s appointment as platform provider, the government has selected law firm Ashurst LLP to advise on the legal framework supporting the pilot.
Tokenisation — the representation of traditional financial instruments as digital tokens on a distributed ledger — has gained traction as regulators and market participants examine new settlement models.
Advocates argue that blockchain-based issuance could enable:
- Faster settlement cycles
- Improved transparency of ownership records
- Reduced reconciliation and back-office costs
However, tokenised bonds still account for only a small fraction of the global debt market. Broader adoption will likely depend on regulatory clarity, interoperability with existing financial infrastructure and sustained investor demand.
Strategic signal for London
Beyond its technical implications, the DIGIT pilot carries strategic weight.
As financial centres compete to attract capital and fintech investment, the UK has sought to position London as a hub for digital asset innovation while maintaining regulatory oversight.
The digital gilt initiative signals continued government interest in integrating distributed-ledger technology into mainstream capital markets infrastructure.
Why this matters
Sovereign debt markets are among the most systemically important components of global finance. Even incremental improvements in issuance efficiency, settlement speed and operational transparency can have significant cost implications for governments and institutional investors.
By testing blockchain-based infrastructure within the gilt market, the UK is exploring whether distributed-ledger technology can move beyond experimental corporate bond pilots into core public financing mechanisms.
If successful, the initiative could influence how other advanced economies approach digital sovereign issuance — potentially reshaping the technological foundations of government bond markets over the coming decade.
FAQs
Q1: What is the UK’s Digital Gilt Instrument (DIGIT)?
DIGIT is a government-backed pilot programme exploring the issuance of tokenised UK government bonds using blockchain technology.
Q2: What role will HSBC play?
HSBC will provide the distributed-ledger infrastructure through its Orion platform, which has supported several digital bond issuances globally.
Q3: What are tokenised government bonds?
Tokenised bonds are conventional debt instruments represented digitally on a blockchain, potentially enabling more efficient issuance and settlement.
Q4: Has the UK issued a digital gilt yet?
No issuance date has been announced. The current phase focuses on infrastructure and legal testing.
Q5: Why is this significant?
If implemented successfully, the initiative could expand the use of blockchain technology in sovereign debt markets and reinforce London’s role as a financial innovation centre.
Q6: Are digital bonds widely used today?
Not yet. While pilot projects are increasing, tokenised bonds remain a small segment of the global bond market.
