In this study, we designed a new type of digital hydraulic transformer using four gear–pump/motor units with a displacement ratio of 20:21:22:23 and two control valve groups that consist of four solenoid directional valves. The driving gear shafts of the four gear–pump/motor units are fixedly connected to achieve synchronous rotation. The two control valve groups are respectively installed through an integrated valve block on the inlet and outlet of each gear–pump/motor unit. With the objective of reducing the installed power and energy consumption of hydraulic traction systems, we propose a new energy-saving hydraulic system based on a digital hydraulic transformer. This hydraulic system uses a digital hydraulic transformer as a pressure/flow control element. By controlling the power on/off states of eight solenoid directional valves, the digital hydraulic transformer can realize a change in output flow and then a change in speed of the hydraulic cylinder piston rod. Through the theoretical derivation and simulation analysis of the hydraulic system pressure/flow change process, and the experimental verification of the built hydraulic traction system based on the experimental platform, a conclusion is drawn that the proposed digital hydraulic transformer can change the output pressure/flow of a hydraulic system through a binary digital control, verifying the feasibility of the pressure change principle of the designed digital hydraulic transformer and the rationality of the hydraulic traction system circuit.