The UK government will launch a pilot to issue digital government bond instruments similar to bonds using distributed ledger technology, the UK Treasury said in a statement on Thursday. "The government will launch a pilot to use distributed ledger technology (DLT) to provide digital government bond instruments to demonstrate its commitment to innovation in the financial services sector," the country's Treasury said. DLT is the underlying technology for crypto assets, where each node can save and update data.

Tulip Siddiq, the UK Treasury's economic secretary, said the Labour Party will soon announce its plans in the cryptocurrency sector. Bloomberg cited unnamed sources as saying that the Labour Party is likely to continue to follow in the footsteps of the former ruling Conservative Party and develop stablecoin and equity pledge legislation.