UK selects six banks to issue first digital-native government bond, set to launch in 2027

On October 7, according to Cointelegraph, the UK government has officially selected Barclays, HSBC, Lloyds, Morgan Stanley, NatWest, and RBC Capital Markets as lead joint underwriters for the pilot of the Digital Gilts Investment Tool (DIGIT), tasked with issuing the UK’s first digitally native sovereign gilt. The project is scheduled to complete its initial issuance in the first quarter of 2027. Treasury Economic Secretary Lucy Rigby announced this arrangement during the UK Digital Assets Week.

The DIGIT bonds will be issued via the UK Digital Securities Sandbox, utilizing distributed ledger technology (DLT) to cover the entire issuance and lifecycle process, while testing on-chain settlement capabilities. Officials stated that this initiative aims to explore blockchain applications in the sovereign debt sector. Richard Baker, CEO of Tokenovate, noted that integrating issuance and settlement through regulated infrastructure could help expand the investor base.