The UK plans to issue its first digital sovereign bond in early 2027, becoming the first G7 country to issue government debt on distributed ledger infrastructure. This digital gilt instrument (Digital Gilt Instrument, DIGIT) will be denominated in pounds, issued via the HSBC Orion platform, and run in the Bank of England and the Financial Conduct Authority (FCA) digital securities sandbox to test the role of blockchain infrastructure in reducing settlement times, reconciliation work, and operating costs. Bank of England Governor Andrew Bailey said the central bank will work to ensure the bond is eligible as market operations collateral. (CoinDesk)

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