UK Treasury Selects HSBC’s Blockchain Platform for Digital Gilt Pilot

The UK Treasury has selected HSBC Holdings’ blockchain platform Orion for the pilot issuance of the country’s digital gilts (DIGIT), according to a Bloomberg report. The move is part of the UK government’s broader initiative to modernize capital markets infrastructure using blockchain technology.

Blockchain for Digital Gilts

HSBC said the adoption of its Orion platform for the pilot could accelerate settlement times and improve operational efficiency in the issuance and distribution of UK government bonds. The digital instruments will be issued within a regulated testing environment overseen by the Financial Conduct Authority (FCA), following a tender issued by the Treasury in October 2025.

The initiative aligns with efforts by multiple jurisdictions to tokenize debt instruments, enabling potentially faster and lower-cost transactions. Global financial institutions have also been exploring blockchain for issuance of bonds, funds, and equity securities, with similar programs underway in Europe and Asia.

HSBC Orion Platform Experience

HSBC’s Orion platform has been deployed for over US$3.5 billion in digitally native bonds globally, including:

• The European Investment Bank’s first digital sterling bond in 2023
• A multicurrency green bond worth US$1.3 billion issued by the Hong Kong government last year

The platform supports the issuance, distribution, and settlement of tokenized debt, providing a regulated infrastructure for institutional investors.

Market Context

While interest in blockchain-based issuance of traditional financial assets is growing, the tokenized debt market remains small relative to the overall bond market. Limited secondary market liquidity continues to constrain adoption. Chancellor Rachel Reeves had projected in November 2024 that the UK could begin issuing digital gilts within the next two years.