UK to issue first 'digital' bond by early 2027, finance minister says

Britain's finance minister Rachel Reeves announced the UK will issue its first digital bond by early 2027, building on a 2024 pilot of the Digital Gilt Instrument using distributed-ledger technology. HSBC was selected in February to run the blockchain platform for the tokenised bond, and the Bank of England will work to ensure the digital gilt can be used as collateral in its market operations. Separately, China CITIC Bank International plans to issue perpetual bonds in US dollars and offshore yuan with initial price guidance around 5.45 percent and 2.90 percent respectively.