UK tokenized gilt project hinges on on-chain infrastructure: CoinDesk

The UK government’s tokenized gilt project is unlikely to gain traction without expanded on-chain settlement infrastructure, CoinDesk reported. According to the outlet, industry experts agree the success of the UK tokenized gilt market depends on resolving on-chain cash settlement issues. CoinDesk said institutional adoption of digital bonds has remained stagnant over the past seven years because of a lack of on-chain cash settlement infrastructure. In other words, the project will require a standardized on-chain settlement method, a pound sterling-pegged stablecoin, and a clear regulatory framework to succeed, while pilot programs alone are unlikely to create an actual capital market.