UK Banks Successfully Test Tokenized Deposits Across Interbank Transactions
Seven major UK banks - Barclays, HSBC, Lloyds Banking Group, Monzo, Nationwide, NatWest, and Santander - have completed the first interbank transactions using tokenized deposits on a shared platform built by Quant.
The Great British Tokenised Deposit initiative, facilitated by UK Finance, successfully tested two real-world use cases: remortgage payments between Lloyds, NatWest, and Barclays, and a simulated online marketplace payment involving HSBC.
The Bank of England and Financial Conduct Authority are preparing the UK financial system for tokenization and longer settlement hours, while considering stablecoins as an option for institutional settlement.
UK Finance plans to establish a company and governance structure to support the initiative, with three digital bonds set to be issued and settled through tokenized deposits by early 2027.