UK picks HSBC as platform provider for its digital bond pilot issuance

Core Insights - The UK has selected HSBC's blockchain platform for its pilot issuance of tokenised government bonds, positioning the country as a leader among G7 nations in exploring blockchain for sovereign debt [1] - The pilot, named "Digital Gilt Instrument," aims to enhance capital market efficiency and reduce costs for financial institutions through distributed-ledger technology [1] - HSBC's Orion platform has successfully facilitated the issuance of over $3.5 billion in digital bonds globally across various sectors [1] Company Insights - HSBC is actively involved in the development of the UK gilt market and the broader economy, expressing satisfaction with its role in the pilot project [1] - The bank's global head of markets and securities services highlighted the platform's proven track record in other jurisdictions [1] Industry Insights - There is a growing global interest in issuing traditional assets on blockchain, although tokenised debt currently represents a small portion of the overall market [1] - The UK government has also engaged Ashurst LLP to provide legal services for the Digital Gilt Instrument pilot [1]