UK Finance Leaders Predict Tokenization Will Reshape Financial Services

Nearly three-quarters of major UK financial institutions expect tokenization to reshape financial services, according to an annual survey by Lloyds Banking Group.

The survey polled 100 senior decision-makers across major UK banks, insurers, asset managers, and financial sponsors, finding that faster payments and settlement emerged as the biggest potential benefit, cited by 60% of respondents.

Lloyds said moving assets and payments onto digital infrastructure could also free up capital and liquidity tied up in financial transactions, allowing institutions to deploy those resources elsewhere.

The bank has tested tokenization 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.