WEBVTT

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The UK government is preparing DIGIT,

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its first government bond issued and settled on

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a distributed ledger.

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Where things stand now.

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Six banks have been named to run the

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pilot sale, and talks with investors can now

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begin.

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HSBC's Orion platform will host it inside the

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Bank of England's Digital Securities Sandbox,

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and in October the Treasury named six banks

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to manage the sale.

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The pilot issuance is expected by the first

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quarter of 2027.

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What changed?

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The Treasury named six banks as joint lead

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managers for the pilot sale,

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completing procurement.

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How we got here.

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On 12 February, the Treasury chose HSBC's Orion

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platform to host the DIGIT pilot after a

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competitive tender, and hired the law firm Ashurst

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for legal work.

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On 13 July, HSBC passed Gate 2 of

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the Digital Securities Sandbox,

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the first entrant cleared to run live digital

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securities depository services.

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On 14 July, at Mansion House,

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the Chancellor said the government is preparing

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for possible further DIGIT issuances if the first

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one succeeds.

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On 6 October, the Treasury appointed Barclays,

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HSBC, Lloyds, Morgan Stanley,

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NatWest and RBC Capital Markets as joint lead

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managers for the DIGIT pilot sale.

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What is confirmed.

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HSBC and LSEG signed a memorandum of understanding

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on a link between their digital depositories,

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so investors could hold DIGIT through either one.

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The government expects DIGIT to be listed on

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the London Stock Exchange's main market as part

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of the pilot.

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With the appointments the procurement is complete,

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and the government says talks with investors can

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now start.

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What is not confirmed yet.

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The government intends to change the law on

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the Digital Securities Sandbox to support DIGIT,

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but has set no date.

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Why it matters.

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The pilot tests whether distributed ledger technology

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can handle the issuance and settlement of UK

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government debt.

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The government says further digital issuances

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depend on how this first one goes.

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What happens next.

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The pilot DIGIT bond is due to be

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issued by the end of the first quarter

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of 2027.

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DIGIT is expected to be listed on the

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London Stock Exchange's main market.

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This is a living record.

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The full story, with sources,

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is at Stories of Record.