The UK plans to issue its first on-chain government bonds in 2027, but is constrained by a lack of compliant GBP stablecoins

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PANews, July 22, according to CoinDesk, the UK plans to issue its first on-chain government bond (digital gilts DIGIT) as early as 2027 via HSBC and the London Stock Exchange Group, but progress hinges on resolving on-chain cash settlement issues. Industry insiders say that putting gilts on-chain enables instant settlement and collateralized cross-platform transfers, and could unlock tens of billions of dollars in idle liquidity. Currently, the daily trading volume of UK gilts exceeds £45 billion. However, the market lacks standardized on-chain payment tools and compliant GBP stablecoins; currently, the largest GBP stablecoin, TGBP, has a market cap of only about $34.2 million. In addition, the UK’s crypto regulatory framework will not take effect until October 2027. Analysts point out that if the accompanying regulations and stablecoin infrastructure are improved, on-chain gilts could become high-quality collateral for a broader tokenized asset market.

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