UK Financial Leaders Expect Tokenization to Reshape 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.

The biggest potential benefit cited was faster payments and settlement, mentioned by 60% of respondents, while 41% pointed to improved collateral and liquidity management.

Lloyds' co-head of global markets, Rob Hale, said 'the next phase is about turning those individual use cases into infrastructure that works at scale, with the interoperability and common standards needed to connect digital and traditional markets.'

The bank has also tested tokenization technology directly. In May, it worked with Archax and Canton Network on what was described as the UK's first public blockchain transaction using tokenized deposits to purchase a tokenized UK government bond.