The UK government has selected six major banks to help issue its first digitally native government bond, known as the Digital Gilt Instrument or DIGIT. Barclays, HSBC, Lloyds, Morgan Stanley, NatWest and RBC Capital Markets will lead the project. The pilot is expected to take place by the first quarter of 2027. It will test how blockchain technology can be used to issue and settle government bonds.
Source: gov.uk
The six banks were selected after a competitive process. They will help with underwriting, talking to investors and distributing the bond. The digital bond will be issued through a platform operating under the UK’s Digital Securities Sandbox. This is a special regulatory environment where new digital financial technologies can be tested.
The UK government wants to see whether distributed ledger technology, or DLT, can be useful in the government bond market. DLT is a technology that allows information about transactions and assets to be recorded and shared across a network. Blockchain is one example of this technology.
The project will cover different stages of the bond’s life, including its issuance and settlement. The government hopes the pilot will also encourage the development of new digital financial systems in the UK.
HSBC had already been selected in February to provide the DLT technology for the project. In July, HSBC and the London Stock Exchange Group also agreed to work on a link for digital securities.
DIGIT is moving closer to market…
At #DigitalAssetsWeek earlier today, I announced the appointment of 6 joint lead managers for the pilot DIGIT issuance. Their expertise in digital markets & traditional sovereign debt markets will help take the project towards launch in Q1 2027.
DIGIT will use DLT to issue & manage our 1st digitally native govt debt instrument. It’s a practical test of new financial market infrastructure & part of our wider work to modernise markets & strengthen 🇬🇧’s competitiveness.
— Lucy Rigby KC MP (@LucyRigby) October 6, 2026
UK Economic Secretary to the Treasury Lucy Rigby announced the appointment of the six banks during UK Digital Assets Week. She described the project as a practical test of new financial market technology.
There are still some important issues to solve. Richard Baker, CEO of Tokenovate and a member of the UK Treasury’s Wholesale Digital Markets Industry Taskforce, said the digital bond will need to connect with existing systems for cash, custody and settlement.
This means the new technology cannot work completely on its own. It will have to work with the financial systems already used by banks and investors.
The project could become important for the wider use of tokenization in financial markets. If the trial works well, it could give the UK more experience in using digital technology for government debt and other financial products. The first digital gilt is expected to be issued by the first quarter of 2027.
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