💥Breaking: UK banks launch tokenized deposit pilot 👇
Barclays, HSBC, Lloyds Banking Group, NatWest, Nationwide and Santander, supported by Quant, EY and Linklaters, are working with UK Finance to deliver tokenized sterling deposits.
The pilot will test programmable payments across three high-impact use cases:
1️⃣ Person-to-person marketplace payments: reducing fraud and boosting buyer/seller confidence.
2️⃣ Remortgaging: faster transactions, greater transparency, lower fraud risk.
3️⃣ Digital asset settlement: linking tokenized money directly to tokenized assets.
➡️ Why this matters: Until now, tokenized deposit innovation has been led by U.S. and Asian banks. This pilot signals the UK’s entry into the global race to define the future of money.
With tokenized assets growing +280% since 2024, banks urgently need rails that connect traditional deposits with digital markets. Tokenized deposits not only protect their core customer and funding base, they also unlock new revenue streams in programmable finance.
https://www.ukfinance.org.uk/news-and-insight/press-release/uk-finance-announces-live-pilot-phase-deliver-tokenised-sterling