Linklaters advises HSBC on mandate to provide platform for UK government’s inaugural digital gilt instrument issuance

Linklaters advised HSBC on its selection by HM Treasury as the platform provider for the UK government’s Digital Gilt Instrument (DIGIT) pilot issuance, to be executed on HSBC’s proprietary digital assets platform, HSBC Orion. Linklaters will also continue to advise HSBC as it develops the HSBC Orion pilot for the DIGIT pilot.

The mandate will support the first issuance of a digital bond by a G7 sovereign and is intended to position the UK as a leading jurisdiction for digital bond issuance, reinforcing its role at the forefront of innovation in global capital markets.

The DIGIT pilot is designed to explore how sovereign bonds issued on a blockchain can deliver efficiencies and reduce costs, as well as help drive liquidity in both the primary and secondary markets.

HSBC Orion has already enabled the issuance of more than US$3.5 billion in digitally native bonds globally across sovereign, supranational, central bank, financial institution and corporate sectors.

The cross-practice Linklaters team was led by Partner and UK Head of Fintech Richard Hay, Michael Voisin and supported by Regulatory Partner Harry Eddis, Counsel Sophia Le Vesconte, Counsel Sarah Willis, Managing Associate Adjoa Abekah-Mensah, Associate Jessica Twumasi and Associate Imran Bhaluani.