UK Banks to Pilot Tokenized Sterling for Programmable Payments
- UK’s major banks to test tokenized deposits for programmable payments.
- Pilot aims to improve payment efficiency and reduce fraud.
- Involves collaborations with Quant Network and financial services firms.
UK Finance, with six leading banks including Barclays and HSBC, starts a pilot of tokenized sterling deposits to advance programmable payments in the UK, running until mid-2026.
The initiative aims to enhance payment efficiency and fraud prevention, potentially transforming the traditional banking sector while aligning with the Bank of England’s regulatory vision.
Six leading UK banks are collaborating to trial tokenized sterling deposits via blockchain, targeting efficiency and fraud reduction.
This initiative signifies a notable shift in financial practices with potential ripple effects on payment systems globally.
Tokenized Deposits Trial Involves Six UK Banks
UK Finance is leading a major pilot involving tokenized sterling deposits with Barclays, HSBC, Lloyds, NatWest, Nationwide, and Santander. The pilot will run until mid-2026, focusing on programmable payments. Quant Network provides the blockchain infrastructure for the pilot, while EY and Linklaters supply technical and legal support. This project builds on previous experiments such as the UK’s Regulated Liability Network.
Potential Impact on UK Financial Policies
This initiative could transform how banks handle deposits, enhancing payment efficiency. Participation by six major banks aligns with government infrastructure agendas and signals a serious industry commitment. The pilot is expected to influence UK financial policy, as noted by Bank of England officials, and could impact future regulations for stablecoins and programmable finance. “Tokenizing deposits helps ensure commercial bank money maintains a central role in the economy,” said Ryan Hayward, Head of Digital Assets at Barclays.
Comparative Analysis of Global Banking Pilots
Comparable projects include Singapore’s Project Ubin and JP Morgan’s JPM Coin, both pioneering similar objectives of programmable digital currency utilization in banking. Historically, such pilots suggest potential progression towards widespread adoption of tokenized banking capabilities, bridging traditional finance and digital innovations with Quant’s technology.
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