Britain is set to become the first G7 nation to trial sovereign blockchain debt, appointing HSBC and law firm Ashurst to lead a digital gilt pilot in the Bank of England’s “digital sandbox.” The controlled environment allows testing under relaxed regulatory rules before broader adoption. HSBC’s Orion blockchain has orchestrated over $3.5 billion in digital bond issuances, including Hong Kong’s $1.3 billion green bond, one of the largest tokenized debt sales globally. The trial aims to slash settlement times and operational costs, but experts caution that full-scale adoption will require new legislation and clarified tax treatment.