The UK Treasury has announced that HSBC Holdings’ Orion blockchain platform will pilot the issuance of DIGIT, the country’s digital bond. The announcement frames DIGIT as the digital bond to be issued via the Orion platform.
The initiative frames DIGIT as a tokenized debt instrument built on blockchain technology, signaling the government’s ongoing exploration of digital securities in public finance. This marks a concrete step toward evaluating tokenized debt within official fiscal operations. The pilot underscores policymakers’ interest in using digital securities to streamline issuance, settlement, and custody while assessing regulatory considerations and market accessibility. By testing a government-backed digital bond on a regulated blockchain, authorities seek to understand the practical benefits and risks of tokenized debt in public finance.
Overall, the DIGIT pilot reflects broader experiments with digital securities and tokenization in public finance. If successful, it could inform future issuance standards and help shape potential wider adoption of blockchain-enabled government debt instruments.
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