Several institutions in the UK have launched a pilot project for tokenization of deposits.

According to Mars Finance, reports from Global Market indicate that some of the largest lending institutions in the UK are advancing plans to launch a tokenized version of customer deposits next year. Previously, Bank of England Governor Bailey had called for tokenization technology to be prioritized over stablecoins, and this banking initiative is a response to that call. The UK Finance Association revealed on Friday that institutions such as HSBC, National Westminster Bank, and Lloyds Bank have initiated pilot projects to use tokenized deposits for payments in online markets. This pilot for tokenized deposits in the UK also involves Barclays Bank, Nationwide Building Society, and Santander Bank, and will continue until mid-2026. Additionally, the pilot will test the application scenarios of tokenized deposits in the remortgaging process and digital asset settlement. Although the UK Financial Conduct Authority (FCA) is expected to finalize stablecoin regulatory rules by the end of 2026, the Bank of England has clearly stated that banks can conduct experiments with tokenized deposits within the existing regulatory framework. Currently, several large banks are simultaneously researching tokenized deposits and stablecoins. The CEO of Citigroup stated in July that the importance of tokenized deposits may surpass that of stablecoins.