Barclays, HSBC, Lloyds, Morgan Stanley, NatWest and RBC Capital Markets will take part in the pilot project. The banks will provide underwriting, investor relations and distribution for the securities issue. British regulators will examine the impact of tokenization on improving market liquidity and efficiency. In addition, they will analyze how tokenization interacts with the existing financial infrastructure.
The bonds will go through their full lifecycle within the UK’s “digital securities sandbox.” Through tokenized bonds, the Treasury aims to broaden capital raising from international investors.