UK Finance and Banks Launch GBP Tokenized Deposit Pilot

UK Finance and six major banks, including Barclays and HSBC, launched a pilot to test tokenized sterling deposits until mid-2026 with Quant’s technical support.

This initiative evaluates new payment forms and settlement services, potentially impacting the future of digital banking and tokenized currencies.

UK Finance and six leading banks have begun the GBP Tokenized Deposit (GBTD) Pilot, focusing on tokenized commercial bank money until mid-2026. This project aims to innovate digital token use in payments and remortgaging services.

Participating banks include Barclays, HSBC, Lloyds, NatWest, Nationwide, and Santander. With technical guidance from Quant, the pilot will explore new payment formats using tokenized versions of sterling deposits.

The pilot may significantly impact banking practices and financial markets by altering transaction methods and increasing demand for blockchain technology. It explores interoperability with digital money systems, aiming to enhance payment efficiency and offer new solutions for remortgaging. Socially, it may redefine interactions between consumers and financial institutions, encouraging broader acceptance of digital payments.

Technological Integration and Future Implications

Quant’s technology is expected to support programmable financial services, fostering growth in digital asset interoperability. Gilbert Verdian, CEO, Quant, stated,

Quant delivers the programmable money and infrastructure for the pilot, enabling features like programmable payments and broad interoperability.

The pilot’s outcomes could transform digital financial services, offering insights into technological integration. Potential challenges or benefits will guide policy and system improvements. Historical precedents like the UK Regulated Liability Network will inform potential market shifts. Successful tokenized banking pilots could drive long-term adoption of interoperable and tokenized payment networks.