UK digital bond plans hinge on one missing piece: onchain cash
Experts say Britain’s digital gilt pilot can unlock trapped liquidity in financial markets only if regulators approve an onchain stablecoin.
Make preferred on
Share this article
Summary
- Britain’s plan to issue its first tokenized sovereign bond by early 2027 hinges on solving on-chain cash settlement, a problem that has impeded institutional use of digital bonds for years.
- Industry experts say the initiative likely has enough backing from the Treasury, Bank of England and regulators to survive recent political upheaval, and could boost demand for U.K. debt.
- Progress is constrained by the absence of standardized onchain payment methods, robust sterling stablecoins and regulatory clarity.
