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.

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.