UK Finance Launches Tokenized Sterling Deposits Pilot With Six Major Banks

Project explores programmable money, faster payments and fraud prevention until mid-2026

UK Finance, the trade association representing more than 300 financial services firms in the United Kingdom, has launched a tokenized sterling deposits (GBTD) pilot in partnership with six major banks. The initiative, announced on Friday, aims to test digital representations of commercial bank money and evaluate how tokenization could improve payments and settlement processes.

Banks and Technology Providers Involved
The pilot involves Barclays, HSBC, Lloyds Banking Group, NatWest, Nationwide, and Santander. The program will run until mid-2026 and focus on benefits for customers, businesses, and the broader UK economy.

To power the project, UK Finance has partnered with Quant Network, a London-based blockchain interoperability firm. Quant had previously led the first phase of the Regulated Liability Network (RLN), a shared-ledger initiative launched in 2024 that engaged leading financial institutions including Citi, Mastercard, Standard Chartered and Visa.

The tokenized deposits pilot will focus on three specific areas:

• Online marketplace payments
• Remortgaging processes
• Wholesale bond settlement

According to Quant CEO Gilbert Verdian, the project is not just about making transactions faster. “This is about enabling programmable money that will fundamentally transform how value is moved and managed,” he said. Verdian emphasized that tokenized deposits could unlock new efficiencies and reduce risks across both retail and wholesale markets.

The pilot comes as the UK Financial Conduct Authority (FCA) finalizes its crypto regulatory framework, with full implementation expected in 2026. Earlier this year, the UK Treasury outlined how tokenized deposits differ from stablecoins and e-money, highlighting their basis in regulated banking deposits.

Meanwhile, the European Union’s Markets in Crypto-Assets (MiCA) regulation, which came into force in late 2024, broadly covers tokenized assets but does not regulate tokenized deposits directly, as they remain under traditional banking rules.

By testing programmable deposits in live scenarios, UK Finance and its banking partners aim to set the foundation for a next-generation payments infrastructure, potentially positioning the UK as a leader in tokenized financial services.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.