The UK Government has initiated the procurement phase for a pilot programme to issue Digital Gilt Instruments (DIGITs) using distributed ledger technology (DLT). This follows the Chancellor of the Exchequer’s announcement in November 2024 regarding the exploration of DLT in sovereign debt issuance.

On 18 March 2025, HM Treasury (HMT) and the UK Debt Management Office (DMO) released additional information and engagement questions, seeking input from potential suppliers and the financial services sector. This initiative aims to understand the current landscape of available or developing services in the UK and to gather insights into investor expectations for DIGIT issuance, thereby informing HMT’s commercial strategy.

The pilot intends to assess how DLT can be applied throughout the lifecycle of UK sovereign debt issuance. It also aims to stimulate the development of UK-based DLT infrastructure and promote the adoption of DLT in UK financial markets. Key design features of the pilot include issuing digitally native, short-dated DIGITs on a platform operating within the Digital Securities Sandbox (DSS), separate from the Government’s main debt management programme.

This move aligns with the Government’s commitment to maintaining the UK’s status as a leading global financial centre by embracing innovative technologies. The pilot will provide valuable insights into the potential benefits of DLT in the debt issuance process and encourage the broader development of DLT platforms across UK capital markets.

Responses to the engagement questions are sought by 13 April 2025, marking a significant step in the Government’s collaboration with the sector to achieve a successful DIGIT issuance.