The UK plans to test its first tokenized government bond through HSBC and the London Stock Exchange Group in early 2027, but industry insiders say whether the project can form a workable capital market depends on whether on-chain cash settlement issues can be resolved. The UK currently lacks standardized on-chain payment methods, and compliant pound sterling stablecoins are seen as a potential solution; existing settlement finality laws also have not yet covered distributed ledgers. A UK working group plans to complete end-to-end tokenized repo transaction testing before spring 2027. (CoinDesk)