HM Treasury has published an update on its Digital Gilt Instrument (DIGIT) pilot issuance, marking a significant step forward in the modernisation of the UK’s debt capital markets.
In a major development under the pilot, financial giants HSBC and the London Stock Exchange Group (LSEG) have signed a memorandum of understanding (MoU) to deliver a bilateral Digital Securities Depository (DSD) link.
The agreement aims to connect the HSBC Orion DSD with LSEG’s DSD, directly supporting the government's ambition to foster interoperability within the DIGIT pilot. By establishing this link, investors will be able to access and hold DIGIT through either infrastructure. This integration is expected to reduce fragmentation between digital platforms and encourage wider participation in the pilot.
Dame Julia Hoggett, CEO of LSE plc and Head of Digital and Securities Markets at LSEG, welcomed the collaboration.
“We are delighted to collaborate with HSBC to enable additional settlement optionality for the market, and to support the DIGIT pilot as an additional Investor DSD,” Hoggett said. “We look forward to helping HM Treasury deliver the UK’s first digital government bond issuance, an important milestone in advancing innovation, strengthening the UK’s leadership in digital finance, and shaping the future of our capital market.”
