UK Banks Place Big Bets on Tokenization as Shift Gains Momentum

UK financial institutions are embracing tokenization as a key part of their future strategy. A recent survey by Lloyds Banking Group found that 71% of UK finance leaders expect tokenization to reshape financial services in the coming years.

Faster payments and settlement topped the list of benefits, with 60% of respondents naming it as the biggest opportunity. Another 41% pointed to improved collateral and liquidity management.

Lloyds has already tested tokenized deposits with Visa, settling $750,000 in USDC payments over a seven-day period. This pilot showed that two different blockchain systems could work together without both sides using the same network.

The UK government estimates that tokenization could add up to $44 billion to the economy by 2035. The country's policymakers are also pushing for a shift toward near-24/7 settlement hours, with the Bank of England proposing an extension in May.