HSBC has been approved by HM Treasury as the provider of its Digital Gilt Instruments (DIGIT) platform pilot, via its Orion operation.
As the UK government pushes ahead with its first-ever tokenised blockchain-based sovereign bond scheme, HSBC Orion will serve as the first issuer of digital gilts and digital corporate bonds.
Proponents of the DIGIT scheme have said the issuing of blockchain-based government bonds has the potential to significantly improve the debt capital markets structure in the UK, accelerating transaction settlement times and driving liquidity in the primary and secondary markets.
“We want to attract investment and make the UK the best place to do business, which is why we are launching DIGIT to understand how the UK can capitalise on this technology, deliver efficiencies and reduce costs for firms,” said City Minister Lucy Rigby.
“This is exactly the kind of financial innovation we need to keep the UK at the forefront of global capital markets and I’m looking forward to working with HSBC and other parties to deliver DIGIT.”
HSBC Orion has had significant experience in digitally native bonds, having been used to enable the issuance of more than $3.5bn worth of the asset type to date.
Its previous ventures include the European Investment Bank’s digital sterling bond in 2023, the digital multi-currency green bond issued by the Hong Kong government in 2024 and digital treasury certificates issued by Luxembourg.
“The UK is a home market for us and the sixth largest economy in the world. HSBC is delighted to be supporting the continued development of the gilt market, market innovation, and the growth of the broader UK economy,” said Patrick George, global head of markets and securities services at HSBC.
“After a competitive selection process, we are very pleased that HM Treasury has chosen our market-leading digital assets platform, HSBC Orion, which already has a proven track record of delivering successful and liquid market outcomes in other jurisdictions.”
