TechFlow News, July 15, according to CoinDesk reports, 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 through the HSBC Orion platform, and will operate within the Digital Securities Sandbox of the Bank of England and the Financial Conduct Authority.
This 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 stated that the central bank will push for the bond to qualify as collateral for market operations in the future. Currently, the UK Treasury has not yet disclosed details such as the issuance size, term, coupon, investor access conditions, and settlement assets of the bond.
