UK government appoints 6 banks to lead issuance of first digital-native government bond, expected in Q1 2027

Odaily News: The UK government has appointed Barclays, HSBC, Lloyds, Morgan Stanley, NatWest, and RBC Capital Markets as joint lead managers for its first digital-native government bond, the Digital Gilt Instrument (DIGIT), which is expected to be issued in the first quarter of 2027. The six banks will provide underwriting, investor communication, and distribution services.

DIGIT will be issued through a platform within the UK Digital Securities Sandbox and will test the application of distributed ledger technology in the issuance and full lifecycle of government bonds, including on-chain settlement. Lucy Rigby, Economic Secretary to the UK Treasury, stated that the project aims to explore the application of distributed ledger technology in the sovereign debt market and to advance the development of the UK's digital financial infrastructure.

HSBC was appointed in February as the distributed ledger technology provider for the pilot, and in July reached an agreement with London Stock Exchange Group to develop a connectivity solution for a digital securities depository. (Cointelegraph)