According to Odaily, the UK's Finance Minister, Tulip Siddiq, has confirmed plans to issue pilot digital gilt bonds using distributed ledger technology (DLT). These digital bonds are equivalent to UK government bonds. Siddiq noted that this pilot initiative will be part of a digital securities sandbox but will not fall under the jurisdiction of the Debt Management Office (DMO), which is responsible for all gilt and treasury bill operations.
Prior to this announcement, reports from the Financial Times indicated that despite opposition from the DMO, Siddiq is determined to advance the digital gilt bonds initiative, known as DIGIT. The report cited a former minister and several department officials who mentioned that the DMO is resisting this move. The introduction of DIGIT represents a significant step in the UK's exploration of digital securities, aiming to leverage the benefits of DLT in government bond issuance.