UK Set to Issue First G7 Digital Sovereign Bond by Early 2027

Britain is preparing to launch a digital sovereign bond by early 2027, making it the first among the world’s seven largest industrialized economies to put government debt on a blockchain based system.

Reeves Announces Plan at Mansion House

Chancellor Rachel Reeves shared the timeline during her yearly Mansion House address to financial leaders, noting that more bond sales are expected to follow the first one. Known as DIGIT, or the Digital Gilt Instrument, the bond will be issued in sterling through HSBC’s Orion platform, operating under the Bank of England and Financial Conduct Authority’s Digital Securities Sandbox program.

A Pilot Years in the Making

Plans for the digital gilt were first announced back in 2024 as part of an effort to see whether blockchain technology could speed up settlement, cut down reconciliation work and lower overall costs. HSBC took charge of running the platform in February, having already handled more than $3.5 billion worth of digital bonds through its Orion system.

Bailey Signals Broader Use for the Bond

Bank of England Governor Andrew Bailey, speaking at the same event, said the central bank intends to make DIGIT usable as collateral in its market operations. This step could open the door to tokenized repo transactions and give banks another way to access central bank funding. So far, the Treasury has not shared specifics on the bond’s size, maturity period, interest rate, who can invest, or how it will be settled. The first sale will take place separately from the UK’s regular gilt-issuance program.