UK Treasury Names Six Banks for DIGIT Digital Gilt Pilot, Targets First Quarter of 2027

The UK Treasury has selected six banks as lead managers for a pilot issuance of blockchain-based government bonds, formally launching a tokenization test aimed at modernizing capital markets.

Bloomberg reported on Oct. 6 that the Treasury had picked Barclays, Morgan Stanley, HSBC, Lloyds, NatWest and RBC Capital Markets as joint lead managers for the pilot issuance of the digital gilt known as DIGIT. The issuance is targeted for the first quarter of 2027.

HSBC was selected earlier this year as the provider of the blockchain platform to be used for the digital gilt’s issuance, trading and settlement. The appointment of the six banks is a follow-up step.

“Digitalization is a key element in positioning the UK as a global hub for digital assets,” Lucy Rigby, Economic Secretary to the Treasury, said in a statement. She added that advancing digital gilt issuance is a central pillar of that agenda.

The DIGIT pilot is part of the UK government’s broader plan to digitize wholesale financial markets. Through the pilot, the Treasury plans to test how blockchain technology can be applied across the full lifecycle of government bonds, from issuance to maturity. The government expects the technology could make trading and record-keeping for assets including bonds, stocks and funds faster and cheaper.

Still, blockchain-based securities issuance remains only a small part of global markets. A key obstacle is the lack of liquid secondary markets for some assets.