The UK government selected HSBC Orion, HSBC’s tokenization platform, to power a pilot issuance of digital government bonds called DIGIT (Digital Gilt Instrument) as part of modernising sovereign debt markets with blockchain.

Since its inception, Orion has supported over $3.5 billion in digital bond issuances, including European Investment Bank GBP-denominated bonds under Luxembourg regulation.

DIGIT aims to modernise the debt capital markets by accelerating settlement times and increasing liquidity in both primary and secondary markets.

The selection followed a competitive procurement process conducted by the government.

The article is a news brief announcing the decision, with readers invited to join Investment Week for full access.

Key expected outcomes include faster settlement, lower trading costs, greater investment, and a scalable framework for future tokenised government securities.

A tender was published in October 2025, with HSBC’s proposal chosen after a competitive process, while the government continues engaging with additional suppliers to support features.

Economic Secretary to the Treasury Lucy Rigby KC MP says DIGIT aims to attract investment, boost UK global capital market leadership, and reduce costs for firms through this technology.

City Minister Lucy Rigby stated that DIGIT seeks to position the UK as a leading hub for business and innovation in capital markets.

The plan, unveiled in late 2024, signals a broader push to modernise government debt markets through blockchain technology.

The initiative signals the UK’s plan to blend blockchain with traditional capital markets, establish a legal framework for digital assets, and showcase leadership in financial innovation.

The pilot will operate in the Bank of England’s digital sandbox to reduce settlement times and operational costs for market participants.