The UK Government has announced a procurement notice for a pilot initiative aimed at the issuance of blockchain-based Digital Gilt Instruments (Digit).
In November 2024, Chancellor of the Exchequer unveiled the pilot project during an event at Mansion House, which utilizes distributed ledger technology (DLT).
To facilitate this pilot, the Treasury has released further details, along with engagement questions, through a Preliminary Market Engagement Notice available via the contract finder service. This initiative seeks feedback from potential suppliers, particularly within the financial services sector, to guide the development and implementation of the Digit program.
According to the Treasury, this exercise will enhance the Government’s understanding of the current landscape of available and developing services in the UK. It will also provide insights into the expectations of potential investors regarding Digit issuances, which will help shape Her Majesty’s Treasury’s commercial strategy.
The primary objective of the pilot is to evaluate how DLT can be integrated throughout the lifecycle of UK sovereign debt issuance. Additionally, it aims to promote the growth of UK-based DLT infrastructure and foster the adoption of DLT within UK financial markets.
The initial design of the pilot has been established to align with these goals. Key features include the Digit being digitally native, short-dated, issued on a platform active within the Digital Securities Sandbox (DSS), and functioning independently from the Government’s primary debt management program.