UK Picks Six Banks to Lead Its First Digitally Native Government Bond

The UK government has chosen six banks to run the sale of its first digitally native government bond, with the pilot due by the first quarter of 2027. Barclays, HSBC, Lloyds, Morgan Stanley, NatWest and RBC Capital Markets will act as joint lead managers for the Digital Gilt Instrument, or DIGIT, after a competitive procurement process.

Economic Secretary to the Treasury Lucy Rigby announced the picks Tuesday at UK Digital Assets Week. The banks will handle underwriting, investor outreach and distribution. Rigby called DIGIT a practical test of new financial market infrastructure and said the appointments bring the digital gilt a step closer to issuance early next year.

How DIGIT Will Use Blockchain Technology

DIGIT will be issued on a platform inside the UK’s Digital Securities Sandbox. It will test distributed ledger technology across the bond’s issuance and lifecycle, including onchain settlement. The government says the aim is to explore the use of this technology in sovereign debt while encouraging digital financial infrastructure in Britain. HSBC was named the pilot’s technology supplier in February, and in July it agreed with the London Stock Exchange Group to build a digital securities depository link.

Can Digital Bonds Connect With Existing Markets?

Richard Baker, CEO of Tokenovate and a member of HM Treasury’s Wholesale Digital Markets Industry Taskforce, said onchain settlement must link up with cash, custody and current settlement systems, backed by common standards and legal certainty. Building that connection early, he said, could show whether tokenization improves liquidity and efficiency without creating new digital silos. Marius Jurgilas, CEO of Axiology and a former central banker, said joining issuance, distribution, trading and settlement through regulated infrastructure could widen the investor base, add funding options and help capital move more easily across borders.