United Kingdom Banks participate in pilot to try tokenized deposits

The main banks of the United Kingdom initiated a live pilot to use tokenized deposits in sterling pounds, advancing in the transition to programmable payment systems. The initiative responds to the call of the governor of the Bank of EnglandAndrew Bailey, who urged the industry to prioritize tokenization rather than issuing own stable.

According to a report published by The Block, UK Finance, The commercial association of the sector, reported that Barclays, HSBC, Lloyds Banking Group, Natwest, Nationwide and Santander They will execute real transactions during this pilot, which began this Friday and will run until mid -2026. The platform they would be using was designed to guarantee interoperability between new forms of digital money and payment systems.

United Kingdom Banks launched tokenized deposit pilot 🚨

Barclays, HSBC, Lloyds and more start live tests until 2026.

The objective: ensure money within the regulated system with faster and more programmable transactions.

P2P payments, remortgaging and … pic.twitter.com/7IVB1BC945

– Diario ฿ Itcoin (@diariobitcoin) SEPTEMBER 26, 2025

In addition, the program will offer tokenization as a service, allowing institutions without internal capabilities to join. The entity announced that an open web seminar will be held on October 6 to explain additional details of the project and its advances.

About the project and its objectives

This pilot is part of the previous phases of the Regulated Liability Network (RLN)initiative that seeks to maintain the money of commercial banks within the regulated system, adding programability and faster settlements. For its implementation, it has technological support and firms advice Quant, ey and linklaters.

Tokenized deposits are digital representations of commercial money. Unlike the stablecoins, they are entirely within the regulatory framework and the consignment protection regimes in the United Kingdom.

The Financial Behavior Authority (FCA) He pointed out that he hopes to finish his rules for Stablecoins in 2026, while the Bank of England He indicated that banks may experiment with tokenized deposits under the current framework.

Use cases that the pilot will test

The project will evaluate three specific use cases:

• First, Person to person payments in in -line markets with reinforced anti -fraud controls.
• Second, remortgagging processes to accelerate property transfer and reduce fraud risks.
• Third, liquidation of digital assets to connect the tokenized money of customers with also tokenized assets.

Each of these cases seeks to demonstrate how technology can simplify and ensure complex financial transactions. In addition, it will allow banks to collect data on efficiency, safety and costs in real environments, something key to justifying future scale implementations.

Implications for banking and the public

This pilot represents a significant step for British banks in their digitalization strategy. By migrating traditional deposits to tokenized versions, financial entities seek to maintain their relevance against new payments and private digital payments infrastructure.

Likewise, it aligns with the objective of Bank of England to create a more innovative financial environment without compromising systemic stability. The experiment could also serve as a model for other countries that assess tokenized deposits into regulated systems.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of UNSPLASH.

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