The UK plans to issue its first digital sovereign bond in early 2027, which could make it the first G7 country to issue government bonds on a distributed ledger

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Deep Tide TechFlow message: On July 15, according to CoinDesk, the UK plans to launch its first digital sovereign bond, DIGIT, in early 2027, and is expected to become the first G7 country to issue government debt on distributed ledger infrastructure. The bond will be denominated in pounds, issued via HSBC Bank’s Orion platform, and will operate within the digital securities sandbox of the Bank of England and the Financial Conduct Authority.

The move aims to test the feasibility of blockchain infrastructure in shortening settlement times, reducing reconciliation processes, and lowering operating costs. Bank of England Governor Andrew Bailey said the central bank will drive the bond in the future to be eligible for market operations collateral. Currently, the UK Treasury has not disclosed details of the bond’s issuance size, tenor, coupon, investor access conditions, or settlement assets.

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