UK Banks Successfully Test Interbank Blockchain Transactions Using Tokenized Deposits

The UK has made history by executing the world's first interbank blockchain transactions using tokenized deposits. Seven of the country's largest banks, including Lloyds and Barclays, completed these transactions on September 24, 2026, with the support of EY and Linklaters. The platform used was Quant's Overledger, which will also power a similar initiative in the US.

The UK program connected seven banks to the Bank of England's RTGS, Faster Payments, and Open Banking infrastructure, allowing them to settle real remortgage transactions and marketplace P2P payments using tokenized deposits. The emphasis on 'contingent payments' points to programmability, the ability to attach conditions to money movement that traditional rails cannot support.

Quant's role as the technology provider for both the UK and US programs positions it as the transatlantic bridge for institutional tokenized money. The Clearing House CEO David Watson stated: 'The Clearing House is proud to help banks scale on-chain money movement by extending the safety, resiliency, and settlement certainty of regulated bank payment rails.'

The next steps are already mapped, with three digital bonds planned for early 2027 settled with tokenized deposits. A dedicated company will be formed to govern the program, and a governance framework is being established to manage the transition from pilot to production.