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UK appoints HSBC for blockchain bond pilot
The Treasury appointed banking giant and law firm Ashurst to steer its digital gilt trial this year as Britain plays catch-up to Hong Kong and Luxembourg.
Feb 12, 2026, 5:48 a.m.
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What to know:
- The pilot will run inside the Bank of England's "digital sandbox," allowing the tokenized government bond to be tested under relaxed regulatory rules before any permanent market structure changes.
- The banking giant has already orchestrated over $3.5 billion in digital bond issuances through its proprietary Orion system, including Hong Kong's $1.3 billion green bond — one of the largest tokenized debt sales to date.
- Industry experts note that even if the pilot succeeds, full-scale adoption of digital gilts will need new laws and clarified tax treatment before becoming a standard feature of UK debt markets.
Britain is positioning itself to become the first G7 nation to issue sovereign debt on the blockchain, appointing banking giant HSBC and law firm Ashurst to steer a digital gilt trial expected this year, according to the Financial Times.
The Treasury's selection of the two firms aims to quell growing criticism that the U.K. has been dragging its feet on tokenized government bonds. While Chancellor Rachel Reeves unveiled the pilot plan in late 2024, other jurisdictions including Hong Kong have already crossed the finish line with their own digital sovereign issuances.
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The pilot aims to slash settlement time and operational costs for market participants. The experiment will run within the Bank of England's "digital sandbox," a controlled environment where financial innovations can operate under relaxed regulatory constraints.
HSBC has experience in digital debt offerings, having orchestrated over $3.5 billion in digital bond issuances through its proprietary Orion blockchain — including Hong Kong's $1.3 billion green bond last year, one of the largest tokenized debt sales globally.
On Wednesday, Hong Kong Financial Secretary Paul Chan Mo-po said the multicurrency offering helped boost liquidity on the product.
"We will regularize the issuance of tokenized green bonds," he said at CoinDesk's Consensus Hong Kong conference, which could support further adoption.
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