The UK plans to issue its first tokenized sovereign bond before early 2027, and cash settlement in the chain remains to be resolved

The UK plans to issue its first tokenized sovereign bond before early 2027. The key prerequisite at present is to solve the problem of cash settlement on the chain. The issue has restricted institutions 'use of digital bonds for years. Industry experts said the plan may have enough support from the UK Treasury, the Bank of England and regulators to move forward after recent political changes and could increase UK debt demand. Current progress is limited by standardized on-chain payment methods, mature sterling stablecoins and lack of regulatory clarity.