UK Plans to Issue First G7 Digital Sovereign Bond by Early 2027

According to ChainCatcher, the UK will become the first G7 nation to issue a digital sovereign bond by early 2027. The bond will be listed on HSBC's Orion platform and included in a digital securities sandbox operated by the Bank of England (BoE) and the Financial Conduct Authority (FCA) to test reduced settlement times and lower costs.

The BoE plans to grant the bond collateral eligibility for market operations, enabling banks to use it in central bank funding transactions, according to BoE Governor Andrew Bailey.