The UK is testing HSBC’s blockchain platform for digital government bonds to modernize debt issuance.

The UK has chosen HSBC’s Orion blockchain platform to pilot digital government bonds, known as the Digital Gilt Instrument, aiming to modernize sovereign debt issuance. The project, led by the Treasury with legal support from Ashurst LLP, will test tokenized bonds within a regulated sandbox, seeking to reduce settlement times and costs. HSBC brings global experience, having facilitated over $3.5 billion in digital bond deals. While the pilot marks a key step toward becoming the first G7 nation to issue digital gilts, no timeline has been set for actual issuance, and widespread adoption will likely require new laws and tax clarity.