The U.K. government plans to implement a pilot for a digital gilt instrument, akin to a bond, utilizing distributed ledger technology (DLT), according to a statement released by the Treasury on Thursday.

Finance Minister Rachel Reeves will introduce the digital gilt instrument pilot, which is part of a broader Financial Services Growth and Competitiveness Strategy. During her inaugural Mansion House speech, she will also outline measures to regulate Environmental, Social, and Governance (ESG) rating providers, as well as regulations pertaining to large pension funds.

The Mansion House speech is an annual platform for the finance minister to present long-term policy visions. Since taking power in July, the Labour Party has remained relatively silent regarding its strategies for the cryptocurrency sector. However, the Treasury's announcement indicates that this Thursday's address aims to reassure companies of the government's supportive stance toward innovation, especially in light of recent developments following Donald Trump's} election victory.

"The government will launch a pilot to deliver a Digital Gilt Instrument, using distributed ledger technology (DLT), demonstrating the government’s commitment to innovation in the financial services sector," stated the Treasury.

Translation: "El gobierno lanzará un piloto para entregar un Instrumento de Gilt Digital, utilizando tecnología de libro mayor distribuido (DLT), demostrando el compromiso del gobierno con la innovación en el sector de servicios financieros."

Tulip Siddiq, the Economic Secretary at the Treasury, has stated that forthcoming announcements regarding the government's plans for the crypto sector are on the horizon. Reports suggest that Labour may continue the previous administration's approach by proposing regulations for stablecoins and staking.

Read more: Bank of England to Carry Out CBDC, Digital Ledger Experiments