The government has named six firms to run the pilot issue of the UK's first digitally native government bond, according to the Treasury. Barclays, HSBC, Lloyds, Morgan Stanley, NatWest and RBC Capital Markets will serve as joint lead managers for the Digital Gilt Instrument, known as DIGIT.

Key points

  • Who — Barclays, HSBC, Lloyds, Morgan Stanley, NatWest and RBC Capital Markets are joint lead managers.
  • What — the firms will underwrite, drum up investor interest and distribute DIGIT when it is issued.
  • When — the pilot is expected to take place by the first quarter of 2027.
  • Why — the trial explores distributed ledger technology across the bond's issuance and life.

The appointments, revealed at Digital Assets Week and set out in a keynote by the City minister, complete the procurement stage and clear the way for talks with investors. The lead managers bring know-how from both conventional sovereign bond sales and digital markets.

The DIGIT pilot will test how distributed ledger technology (DLT) can be used across the issuance and lifecycle of a bond. It is part of wider government efforts to modernise wholesale financial markets and keep the UK competitive as the technology reshapes finance.

Lucy Rigby KC MP, Economic Secretary to the Treasury, said the appointments marked an important step towards issuance early next year, adding that digitalisation is central to ensuring the UK can be a global hub for digital assets.

The bond will be digitally native, short-dated and issued on a platform inside the Digital Securities Sandbox, with settlement taking place on-chain. It will sit apart from the government's main debt management programme. The announcement follows HSBC's appointment as DLT supplier in February and a July memorandum of understanding between HSBC and LSEG to deliver a bilateral Digital Securities Depository link.

Editor's comment

What it means in practice

The pilot is aimed at institutions rather than household investors, so there is nothing for most people to buy, sign up for or download. The practical effects will show up in how the City issues and settles debt, and in the groundwork for future digital market infrastructure.

  • No action needed — this does not change savings, pensions or tax paperwork for everyday investors.
  • Watch the timing — issuance is expected by early 2027, with trials inside the sandbox before then.
  • City impact — if the pilot works, digital settlement could spread to other UK financial markets over time.