# Bank of England’s Sarah Breeden: Digital gilt will bring down borrowing costs.

*fintech · news · 2026-05-20 · City A.M.*

## Key points

- The Bank of England plans to issue the first all-digital sovereign bonds in a developed economy.
- Digital gilts are expected to have a lower yield than traditional bonds due to reduced settlement cost.
- Early proposals for strict stablecoin caps and reserves may be softened after industry backlash.
- Britain's digital bond push will expose key market infrastructure to increased cyberattack risks.
- Anthropic has postponed releasing its latest AI model after identifying widespread IT security weaknesses among financial firms.

**Companies:** Bank of England, Anthropic
**Countries:** United Kingdom

[Read the full story on City A.M.](https://www.cityam.com/bank-of-england-deputy-governor-digital-gilt-plans/)

---

Canonical: https://newsio.io/n/36a1e835-5036-41d4-badc-0632c32bbd08/bank-of-englands-sarah-breeden-digital-gilt-will-bring-down-borrowing-costs-she
Summarized by Newsio from City A.M.. https://newsio.io/how-it-works