The U.K. Treasury is gearing up to pilot a digital gilt using distributed ledger technology (DLT), a move aimed at strengthening the country’s position as a financial innovation hub. The Treasury outlined the initiative in a statement released Thursday, with Finance Minister Rachel Reeves expected to present further details in her first Mansion House speech. The pilot aligns with a broader effort to boost growth and competitiveness in the financial services sector, and will accompany planned reforms targeting ESG ratings providers and pension fund regulations.

chancellor of the Exchequer
The Rt Hon Rachel Reeves

The annual Mansion House speech serves as a key platform for unveiling long-term economic strategies. Since Labour took office in July, the party has kept a relatively low profile on cryptocurrency policy, but this announcement suggests a renewed focus on digital finance. Following Donald Trump’s recent election victory and his administration’s crypto-friendly stance, the U.K. aims to stay competitive by embracing blockchain-based solutions in government-issued gilts.

Tulip Siddiq, the Treasury’s economic secretary, indicated that Labour’s full agenda for digital assets will be unveiled soon. Labour is reportedly considering legislation on stablecoins and staking, reflecting a continuity with the Conservative government’s prior commitments. As countries globally look to weave digital assets into traditional financial systems, these initiatives are set to reinforce the U.K.’s leadership in financial services innovation, bringing blockchain-based solutions into mainstream finance.