The United Kingdom plans to issue its first tokenized sovereign bond by early 2027, with on-chain cash settlement still a key requirement. According to Odaily, the issue has long limited institutional use of digital bonds.
Industry experts said the plan may have enough support from the U.K. Treasury, the Bank of England, and regulators to continue after recent political changes, and it may increase demand for U.K. debt. Progress remains constrained by the lack of standardized on-chain payment methods, a mature pound sterling stablecoin, and regulatory clarity.