The UK plans to issue its first tokenized sovereign bond by early 2027, but on-chain cash settlement remains unresolved.

According to Odaily, the United Kingdom plans to issue its first tokenized sovereign bond by early 2027, with the current key prerequisite being the resolution of on-chain cash settlement issues. This problem has restricted institutional use of digital bonds for many years.

Industry experts state that the plan may have gained sufficient support from the UK Treasury, Bank of England, and regulatory bodies, allowing it to proceed despite recent political changes, and could potentially increase the demand for UK debt.

Currently, progress is limited by the lack of standardized on-chain payment methods, a mature GBP stablecoin, and regulatory clarity.