The United Kingdom government just tapped HSBC’s cutting-edge tokenization platform to drive the tokenized bond pilot for digital government bonds, known as gilts, putting Britain in prime position to lead the charge among major economies.
In an announcement, HM Treasury named HSBC Orion as the go-to platform for the Digital Gilt Instrument (DIGIT) tokenized bond pilot.
This latest move comes after the Treasury’s July 2025 update, where ambitious plans for using blockchain’s potential for sovereign debt were revealed. It was also discussed to build homegrown tokenization infrastructure.
“We want to pull in investment and make the UK the absolute best spot for business,” said Lucy Rigby, Economic Secretary to the Treasury.
Rigby explained how this tokenized bond pilot will help the country harness distributed ledger technology (DLT) to boost efficiency, cut costs, and open opportunities.
The tokenized bond pilot emphasizes on-chain settlement, supports secondary market growth, and keeps things separate from the UK’s main debt operations, smart design for real-world testing without disrupting the bigger picture.
“This is the sort of bold financial innovation that keeps the UK leading global capital markets,” Rigby added. “I’m excited to team up with HSBC and others to bring DIGIT to life.”
HSBC isn’t new to this game. Since rolling out Orion in 2023, they’ve powered over $3.5 billion in digital bonds worldwide, including groundbreaking ones like the European Investment Bank’s first digital sterling bond and the Hong Kong government’s multi-currency $1.3 billion equivalent issuance.
“The UK is our home turf and the world’s sixth-largest economy,” said Patrick George, HSBC’s global head of markets and securities services.
“We’re thrilled to help evolve the Gilt market, spark real innovation, and fuel broader economic growth through this tokenized bond pilot.”
Alongside HSBC Orion, the government brought in top law firm Ashurst for legal support.
“Our experts live and breathe digital asset deals,” said Etay Katz, Ashurst’s head of digital assets.
“We’re eager to partner with HSBC and back the government on this game-changing step for UK capital markets.”
This tokenized bond pilot isn’t just a test run, it’s a clear signal that blockchain is moving from hype to practical reality in sovereign finance, with the UK aiming to set the pace.
