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UK Picks HSBC’s Orion to Run Pilot Digital Gilt in Regulators’ Sandbox

Results will guide the Bank of England’s view on using digital gilts in its operations.

Overview

  • HM Treasury selected HSBC’s Orion platform through a competitive tender and appointed Ashurst as legal adviser for the Digital Gilt Instrument pilot.
  • The issuance will be short-dated and digitally native with on‑chain settlement and features intended to support secondary market activity.
  • The trial will operate inside the Bank of England and Financial Conduct Authority’s Digital Securities Sandbox and remain separate from the main debt programme.
  • A specific issuance date has not been disclosed, with the pilot expected later in 2026 and a post‑pilot review planned by the Bank of England on eligibility for monetary operations.
  • The initiative aims to cut settlement times and operational costs and positions the UK ahead of G7 peers in exploring tokenised sovereign debt.