Crypto

UK names six banks to lead first digitally native government bond

UK authorities have named six banks to lead a pilot issuance of a government bond using distributed ledger technology — the same technology behind cryptocurrencies.

The DIGIT pilot will test onchain settlement for the bond, with issuance expected by the first quarter of 2027.

For beginners A distributed ledger can record and transfer ownership of assets without a central intermediary; for government bonds this could speed up settlement and add transparency, though it remains an experiment rather than a replacement for the existing system.