Britain's Treasury has allocated transaction roles to six banks for its planned digitally native government bond, advancing preparations for a pilot issuance expected by the first quarter of 2027. The 2 November announcement also reports Bank of England regulatory approval for a link between HSBC and LSEG digital securities depositories. Treasury announcement
The Digital Gilt Instrument, known as DIGIT, is intended to test distributed ledger technology in sovereign borrowing. It has not been issued under this announcement. The Treasury says the pilot will be short-dated, use on-chain settlement and operate within the Digital Securities Sandbox, outside the government's main debt management programme. Treasury announcement
HSBC will handle documentation, settlement, billing and delivery, and bookbuilding. RBC Capital Markets and Barclays will coordinate the roadshow and market communications, while Lloyds takes press and external communications. NatWest and Morgan Stanley will act as platform coordinators, helping investors join and use their chosen digital infrastructure. Treasury announcement
Those assignments follow the appointment of the six joint lead managers in October. The newly created platform-coordinator role reflects a practical task for the pilot: enabling investors to access a digitally issued security, as well as organising the underlying bond transaction. Treasury announcement
Under the approved link described by the Treasury, HSBC Orion will act as the issuer's digital securities depository and LSEG B3 as an investor depository. Investors would be able to access DIGIT through either infrastructure. Reducing fragmentation and broadening participation are the Treasury's stated aims, rather than demonstrated outcomes of an issuance that has yet to happen. Treasury announcement
The next milestone is the pilot sale, which the Treasury expects by Q1 2027. The release does not specify an exact issuance date, size or coupon. It presents the project as a test of financial infrastructure, rather than a replacement for the UK's regular borrowing programme. Treasury announcement
