UK Names Six Banks to Lead Digital Government Bond Pilot

The United Kingdom named six banks to lead a pilot of its first digitally native government bond, a test of distributed ledger technology in sovereign debt markets with issuance expected by the first quarter of 2027.

Barclays, HSBC, Lloyds, Morgan Stanley, NatWest and RBC Capital Markets will serve as joint lead managers. Their work will include underwriting, investor engagement and distribution.

Economic Secretary to the Treasury Lucy Rigby announced the appointments at UK Digital Assets Week on Oct. 6. The Digital Gilt Instrument, or DIGIT, will be issued on a platform operating within the UK’s Digital Securities Sandbox.

The pilot will test distributed ledger technology across the bond’s issuance and lifecycle, including onchain settlement. The government aims to examine how the technology can be used in sovereign debt markets while supporting digital financial infrastructure in the UK.

HSBC was appointed as the pilot’s distributed ledger technology supplier in February. In July, HSBC and the London Stock Exchange Group agreed to develop a digital securities depository link.

Issuance is expected by the first quarter of 2027.