UK Finance Leaders Back Tokenization as Key to Industry Revolution

Nearly three-quarters of UK finance leaders believe tokenization will revolutionize financial services, according to a recent survey by Lloyds Banking Group. The poll of 100 senior decision-makers across major UK banks, insurers, asset managers, and financial sponsors found that 71% expect tokenization to reshape the industry.

The biggest potential benefit cited was faster payments and settlement, with 60% of respondents pointing to this advantage. Improved collateral and liquidity management were also seen as key benefits, with 41% of respondents highlighting these areas.

Lloyds has been actively exploring blockchain-based infrastructure for payments, settlement, and liquidity management. The bank has even tested the technology directly, working with Archax and Canton Network on what it described as the UK's first public blockchain transaction using tokenized deposits to purchase a tokenized UK government bond.