The UK plans to issue its first digital sovereign bond in early 2027

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Golden Finance reported that on July 15, 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 sterling, issued via HSBC Bank’s Orion platform, and operated within the Bank of England and the Financial Conduct Authority’s digital securities sandbox. 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 work to ensure the bond can qualify as market operations collateral in the future. At present, the UK Treasury has not yet disclosed details including the bond’s issuance size, maturity, coupon, investor access requirements, and settlement assets.
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