Digital Gilt Instrument (DIGIT) Pilot Update · first published 15 July 2025
The Digital Gilt Instrument (DIGIT) pilot is a government experiment using distributed ledger technology (DLT) — essentially blockchain-style infrastructure — to issue and manage UK government debt (gilts). In March 2025 the government began engaging the market through a Preliminary Market Engagement Notice (PMEN); this update confirms the additional features to be tested, including on-chain settlement, over-the-counter trade settlement, interoperability between traditional and DLT markets, and greater transparency of securities ownership. The next formal procurement stage will be published over summer 2025, with suppliers expected to be appointed before the end of the year. This is a niche, highly specialist financial technology procurement; it is not a general IT or professional services opportunity. Small businesses in DLT platform development, fintech infrastructure, or digital securities technology are the relevant audience.
WHO THIS APPLIES TO
THE ENKII VIEW
For the very small number of SMEs operating in DLT platform development or digital securities infrastructure, this is a live and fast-moving procurement with a formal tender stage imminent (summer 2025). The government has explicitly signalled it wants to work with industry — including appointing "industry leads" this autumn — which creates a route for SMEs to engage even short of winning a prime contract. However, the highly specialised nature of sovereign debt issuance and the Digital Securities Sandbox (DSS) requirement will effectively exclude most small firms unless they have established fintech credentials or are positioned as subcontractors to larger platform providers.
1. Watch for the next DIGIT procurement notice published by the government over summer 2025 — this is the formal tender stage. Set up a GOV.UK Find a Tender Service (FTS) alert for 'DIGIT' or 'Digital Gilt' so you do not miss the publication window.
SMEs with DLT platform, digital securities, or fintech infrastructure capabilities — The document states the next procurement phase will be 'published over the summer with a view to appointing suppliers later this year' — the window is short and competitive.
2. Approach larger platform providers or existing market infrastructure firms now about subcontracting or partnership roles on DIGIT — don't wait for the prime tender to appear.
SMEs positioned as subcontractors or technology partners to larger DLT platform providers — The document explicitly states the government will work with 'industry, platform providers and existing market infrastructure providers', suggesting prime contractors will play a coordinating role, creating supply-chain opportunities for specialist SMEs.
3. Express interest in the 'industry leads' roles being recruited this autumn under the Digital Markets Champion initiative — monitor the Wholesale Financial Markets Digital Strategy for how to apply.
SMEs with relevant DLT or digital markets expertise seeking non-contract engagement — The document states 'The government will appoint industry leads to these roles this Autumn' — these positions offer influence over the cross-sectoral strategy and visibility into future DIGIT procurement without requiring a direct contract win.
4. Review the Digital Securities Sandbox (DSS) eligibility requirements — any platform solution must operate within the DSS, so confirm whether your technology qualifies or requires a DSS-authorised partner before investing in a bid.
SMEs considering DIGIT opportunities — The document states DIGIT will be 'issued on a platform operating within the Digital Securities Sandbox (DSS)' — this is a hard platform constraint that will affect bid viability.
Every rule below quotes the official document verbatim.
The DIGIT pilot will be digitally native, short-dated, issued on a platform operating within the Digital Securities Sandbox (DSS), and the issuance will be separate from the government's main debt issuance programme. (DIGIT pilot — central government sovereign debt issuance experiment)
“DIGIT will be digitally native, short-dated, issued on a platform operating within the Digital Securities Sandbox (DSS) and that the issuance will be separate from the government's debt issuance programme.”
The government will prioritise solutions that allow DIGIT to be settled on DLT, including the cash leg of transactions (on-chain settlement). (DIGIT pilot supplier solutions)
“the government will prioritise solutions that allow DIGIT to be settled on DLT. This includes the cash leg of DIGIT transactions.”
The pilot will test the ability to settle over-the-counter (OTC) trades between counterparties on a DLT platform, including the role of smart contracts. (DIGIT pilot supplier solutions)
“The ability to trade DIGIT between counterparties on a DLT platform is important for establishing an active market. This includes testing functionality of DLT compared to standard fixed income markets, such as the role smart contracts can play in over-the-counter trades.”
Supporting interoperability between traditional and DLT markets is a stated pilot objective, with the government intending to work with industry, platform providers and existing market infrastructure providers. (DIGIT pilot — all potential platform/infrastructure suppliers)
“The government will look to work with industry, platform providers and existing market infrastructure providers to foster interoperability in supporting access to DIGIT from investors operating in both traditional and DLT markets.”
Greater transparency of securities ownership via DLT is a feature to be tested as part of the pilot. (DIGIT pilot supplier solutions)
“DLT platforms have the capability to provide greater visibility of securities ownership and other potential benefits. This is an important area where DLT can go beyond what is possible on existing infrastructure making it important to test how these benefits can be realised.”
The government also wants to develop additional DIGIT features including collateral mobility, listings on DLT, and secondary markets development. (DIGIT pilot — future development scope)
“This includes supporting solutions that enable collateral mobility; examining the case for listings on DLT; and the development of secondary markets.”
A new Digital Markets Champion role is being created under the Wholesale Financial Markets Digital Strategy to develop a cross-sectoral strategy for delivering DIGIT features; industry leads will be appointed this autumn. (Financial services sector — industry engagement)
“It is the government's intention to engage with the Digital Markets Champion, a new role being created under the Wholesale Financial Markets Digital Strategy being published today, to develop a cross-sectoral strategy for delivering these features. The government will appoint industry leads to these roles this Autumn.”
The next phase of the procurement process will be published over summer 2025, with a view to appointing suppliers later in 2025. (DIGIT pilot procurement timeline)
“The government intends to set out further details on the pilot as a part of the next phase of the procurement process which will be published over the summer with a view to appointing suppliers later this year.”
The Preliminary Market Engagement Notice (PMEN) was launched in March 2025 and closed in April 2025. (DIGIT pilot procurement — stage 1 (now closed))
“In March 2025 the government announced the start of its procurement process for the Digital Gilt Instrument (DIGIT) Pilot. This first stage of the procurement process was the Preliminary Market Engagement Notice (PMEN)... This process closed in April.”
This briefing is enkii's interpretation of the official document — the official text always governs.
Source document © Crown copyright, reused under the Open Government Licence v3.0 via the GOV.UK Content API. enkii tracks every Procurement Policy Note and briefs changes the day they land — see all briefings.