UK Names Six Banks for Digital Gilt Pilot

The banks will act as joint lead managers for the pilot issuance of the Digital Gilt Instrument, known as Digit. They were selected through a procurement process.

Digit will test how distributed ledger technology can be used to issue and manage a government bond. The short-dated gilt will be digitally native, with ownership and settlement recorded on a blockchain.

The gilt will be issued through a platform operating within the UK’s Digital Securities Sandbox, which allows firms to test technology for financial markets under regulatory oversight. Digit will remain separate from the government’s main debt management programme.

HSBC won a public tender in February to provide the blockchain platform for the pilot. The bank later signed a memorandum of understanding with London Stock Exchange Group to link the platform to a bilateral Digital Securities Depository.

Economic Secretary to the Treasury Lucy Rigby described digitalisation as central to the UK’s plan to become a global hub for digital assets. She called the appointment of the lead managers an important stage in preparations for the planned issuance in early 2027.