UK enters procurement phase for DIGIT
19 March 2025 UK
Image: Bartek/stock.adobe.com
UK Chancellor Rachel Reeves has begun the procurement process for Digital Gilt Instrument (DIGIT), which will test the demand for and use of distributed ledger technology (DLT).
The financial services sector is being invited to help shape DIGIT and support the growth of this new technology.
Reeves states: “The UK is leading the way on digital innovation, and the creation of DIGIT will help to transform our capital markets sector and drive economic growth.”
HM Treasury is seeking information from potential DLT suppliers and fintech firms to understand what technology options are available to facilitate issuance, the scope of services that may need to be procured, and investor preferences regarding a DIGIT issuance.
Interested parties can submit their responses to HM Treasury by 13 April.
This represents the first stage of the procurement process and will help the government body shape the optimal commercial strategy.
The next stage will be to develop a statement of requirements and publish a tender notice in late spring, with the successful supplier being selected in late summer.
According to Diego Ballon Ossio, fintech partner at Clifford Chance, this announcement is welcome news for the industry.
“We have seen significant client interest in the DIGIT initiative since its inception, from domestic and international clients, it is encouraging to see more details being released,” says Ossio.
However, he adds that it is crucial to ensure that the project enables broad participation, allowing the wider ecosystem to trial and benefit from this approach.
The financial services sector is being invited to help shape DIGIT and support the growth of this new technology.
Reeves states: “The UK is leading the way on digital innovation, and the creation of DIGIT will help to transform our capital markets sector and drive economic growth.”
HM Treasury is seeking information from potential DLT suppliers and fintech firms to understand what technology options are available to facilitate issuance, the scope of services that may need to be procured, and investor preferences regarding a DIGIT issuance.
Interested parties can submit their responses to HM Treasury by 13 April.
This represents the first stage of the procurement process and will help the government body shape the optimal commercial strategy.
The next stage will be to develop a statement of requirements and publish a tender notice in late spring, with the successful supplier being selected in late summer.
According to Diego Ballon Ossio, fintech partner at Clifford Chance, this announcement is welcome news for the industry.
“We have seen significant client interest in the DIGIT initiative since its inception, from domestic and international clients, it is encouraging to see more details being released,” says Ossio.
However, he adds that it is crucial to ensure that the project enables broad participation, allowing the wider ecosystem to trial and benefit from this approach.
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