UK launches blockchain digital bond pilot with HSBC Orion
The UK government has appointed HSBC's tokenization platform to pilot digital government bonds known as “gilts”, marking its efforts to modernize sovereign debt markets using blockchain technology.
HM Treasury has appointed HSBC Orion to facilitate the pilot offering of the Digital Gilt Instrument (DIGIT), according to an announcement on Thursday.
In July 2025, the Treasury published an update to the DIGIT pilot, outlining plans to explore blockchain applications in UK sovereign debt issuance and support domestic tokenization infrastructure.
Commenting on HSBC's Orion DIGIT appointment, “We want to attract investment and make the UK the best place to do business,” said Lucy Rigby, UK Treasury Economic Secretary. She added that the pilot will show how the UK can use distributed ledger technology (DLT), increasing efficiency and reducing costs for doing business.
The main objectives and characteristics of the DGT pilot
The DigiPilot aims to enable digital native, short-term government bonds operating in a Digital Securities Sandbox (DSS).
The pilot is designed to support secondary market development and wider access through onchain settlements independent of the UK government's main debt management programme.
“This is exactly the kind of financial innovation we need to keep the UK at the forefront of global capital markets and I look forward to working with HSBC and others to deliver Digit,” Rigby said.
HSBC has issued a $3.5 billion digital bond globally.
In the year Since its launch in 2023, HSBC Orion has enabled the issuance of at least $3.5 billion in digital sovereign bonds globally, including the European Investment Bank's first digital sterling bond and a $1.3 billion equivalent bond by the Hong Kong government.
Patrick George, Head of Global Markets and Securities Services at HSBC, said: “The UK is our home market and is the sixth largest economy in the world. HSBC is delighted to support the continued development of the gilt market, market innovation and the growth of the wider UK economy.”
Related: Central Bank of Malaysia announces stable coin, tokenization sandbox
The UK government has also appointed Ashurst to provide legal services to the pilot, alongside the appointment of HSBC Orion as its digital platform provider.
“Our team brings deep expertise in digital assets transactions, and we look forward to working with HSBC and supporting the government as it takes this transformative step for UK capital markets,” said Etai Katz, Head of Digital Assets at Ashurst.
Magazine: How crypto rules have changed in 2025 — and how they will change in 2026
