Multiple institutions in the UK launch tokenized deposit pilot projects

ChainCatcher news, according to Global Market Broadcast, several of the UK's largest lending institutions are advancing plans to launch tokenized versions of customer deposits next year. Previously, the Governor of the Bank of England, Bailey, had called for tokenization technology to be prioritized over stablecoins, advocating for the development of this technology. This move by the banks is a direct response to that call.

The UK Finance Association revealed on Friday that institutions such as HSBC, NatWest, and Lloyds Bank have launched pilot projects to use tokenized deposits for payments through online marketplaces. The UK's tokenized deposit pilot also involves Barclays, Nationwide Building Society, and Santander, and the trial will continue until mid-2026. In addition, the pilot will test application scenarios for tokenized deposits in mortgage transfer processes and digital asset settlements.

Although the UK's Financial Conduct Authority (FCA) is not expected to finalize stablecoin regulatory rules until the end of 2026, the Bank of England has made it clear that banks can conduct experiments with tokenized deposits within the existing regulatory framework. Currently, several major banks are simultaneously researching both tokenized deposits and stablecoins. The CEO of Citigroup stated in July that the importance of tokenized deposits may surpass that of stablecoins.