Britain’s “Digital Gilt Instrument” pilot was announced in 2024 and tests how distributed-ledger technology could make capital markets more efficient and reduce costs for financial institutions
Reeves made the announcement in her annual Mansion House speech in the City of London financial district and said further issuance was planned after the initial sale
China CITIC Bank International plans to issue perpetual bonds in US dollars and offshore yuan. Initial price guidance is set around 5.45% for dollar bonds and 2.90% for yuan bonds. These benchmark-sized deals will strengthen the lender’s capital base and absorb potential losses. The bank will hold a global investor call later today for these securities. Proceeds from the bonds will fund general corporate purposes after a five-year redemption period.
Bank of England Governor Andrew Bailey said at the same event that the BoE will work to ensure the digital gilt can be used as collateral in BoE market operations
Britain’s finance ministry picked HSBC in February to run the blockchain platform which will be used by the tokenised bond
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