The UK government has appointed HSBC’s Orion platform to support a pilot issuance of tokenized government bonds, known as gilts, under its Digital Gilt Instrument program. The initiative is part of HM Treasury’s broader effort to modernize sovereign debt issuance using distributed ledger technology. The pilot will operate within the Digital Securities Sandbox and run independently from the government’s core debt management operations.
The DIGIT program is designed to test digitally native, short-dated bonds with onchain settlement capabilities. Officials have said the objective is to improve operational efficiency, reduce issuance costs and enhance market accessibility. The Treasury first outlined the framework in 2025 as part of a strategy to strengthen the UK’s position in digital asset infrastructure and capital markets innovation.
Sovereign Debt Modernization Effort
HSBC Orion, launched in 2023, has facilitated more than $3.5 billion in digital bond issuances globally, including transactions for the European Investment Bank and the Hong Kong government. The UK appointment represents a domestic deployment of the platform in one of the world’s largest sovereign bond markets.
Treasury officials indicated that the pilot will also support the development of a secondary market for tokenized gilts. Onchain settlement could streamline post-trade processes and reduce reconciliation costs, aligning with broader global trends toward programmable securities.
Competitive Positioning in Digital Capital Markets
The UK’s move comes as jurisdictions including Singapore, Hong Kong, and the European Union expand tokenized bond experiments. Policymakers view distributed ledger technology as a means to attract capital flows and maintain competitiveness in global financial services.
Legal advisory firm Ashurst has also been appointed to support the pilot’s regulatory and structural framework. The collaboration underscores the institutional and compliance considerations required as sovereign issuers test blockchain-based infrastructure. For the UK, the DIGIT pilot represents a controlled step toward integrating tokenization into traditional debt markets while preserving regulatory oversight and market stability.