Britain is set to become the first major advanced economy to issue a digital sovereign bond by early 2027, finance minister Rachel Reeves announced on Tuesday, July 14, 2026. The announcement was made during her annual Mansion House speech in the City of London financial district, where she also indicated plans for further issuance following the initial sale.

The digital bond initiative, known as the "Digital Gilt Instrument," was first announced in 2024. It explores the use of distributed-ledger technology to improve capital market efficiency and reduce costs for financial institutions. The UK finance ministry selected HSBC in February 2026 to operate the blockchain platform that will underpin the tokenised bond.

Bank of England Governor Andrew Bailey, speaking at the same event, stated that the Bank of England will work to ensure the digital gilt can be used as collateral in its market operations, supporting the integration of this new financial instrument into existing frameworks.

This move marks a significant step in the modernization of government debt issuance, potentially setting a precedent for other advanced economies.

Sources