Policy paper: Announcement of Preliminary Market Engagement Exercise for the Digital Gilt Instrument (DIGIT) Pilot

HM Treasury and the DMO are seeking views from industry to inform the development and delivery of the pilot DIGIT issuance.

Today (18 March), the Chancellor of the Exchequer announced details of the launch of the procurement process for the pilot Digital Gilt Instrument (DIGIT) issuance.

HMT has published additional information, engagement questions and has issued a Preliminary Market Engagement Notice through the contract finder service. This provides further information on the scope of the DIGIT pilot and seeks views from potential suppliers including the financial services sector, to inform the development and delivery of DIGIT.

In November 2024, the Chancellor of the Exchequer announced at Mansion House the launch of a pilot Digital Gilt Instrument (DIGIT) issuance, leveraging cutting-edge distributed ledger technology (DLT). This announcement was followed by a Written Statement to Parliament, outlining further details of the issuance and highlighting the Government’s commitment to engaging with the sector in 2025.

Today’s announcement represents the first step of the Government’s work with the sector towards achieving a successful DIGIT issuance. This exercise will allow the Government to understand the current landscape of services available, or in development, in the UK, as well as to gain insight into what potential investors want to see from a DIGIT issuance to help inform HMT’s commercial strategy.

DIGIT will support the Government’s commitment to maintain the UK as a world-leading and global financial centre. As other financial hubs explore DLT, the potential for significant growth in this area is clear. By launching now, the Government is positioning the UK financial services sector to take advantage of this opportunity.