UK's Tokenised Sterling Pilot Aims to Secure Global Payment Leadership

UK Finance has launched a collaborative industry pilot project to develop tokenised sterling deposits (GBTD), a digital form of traditional commercial bank money, in partnership with six major UK banks and Quant Network. The initiative aims to enhance payment efficiency, fraud prevention, and settlement processes while positioning the UK as a leader in payments innovation. Participating institutions include Barclays, HSBC, Lloyds Banking Group, NatWest, Nationwide, and Santander, with technical infrastructure provided by Quant Network, a blockchain interoperability specialistTokenised sterling deposits | UK Finance^[1]. The project builds on the UK Regulated Liability Network (RLN) pilot and aligns with the Bank of England’s push for digital technology integration in financial systemsTokenised sterling deposits | UK Finance^[1].

The GBTD pilot will focus on three key use cases: person-to-person payments via online marketplaces, remortgaging processes, and digital asset settlements. These applications seek to reduce fraud, improve transparency, and streamline transactions. For example, tokenised deposits could enable faster and more secure online payments by reducing intermediaries, while remortgaging could benefit from real-time verification of property transfersTokenised sterling deposits | UK Finance^[1]. In digital asset settlements, the project aims to connect tokenised customer money with digital assets for seamless exchangesTokenised sterling deposits | UK Finance^[1]. The pilot is scheduled to run until mid-2026, with outcomes expected to inform the UK’s National Payments Vision (NPV) and support government initiatives like the digital gilt (DIGIT) programTokenised sterling deposits | UK Finance^[1].

Quant Network’s role in the project underscores its expertise in blockchain interoperability. The company’s infrastructure will facilitate tokenisation-as-a-service, enabling institutions without in-house capabilities to participateTokenised sterling deposits | UK Finance^[1]. Gilbert Verdian, CEO of Quant, described the initiative as a “pivotal step” in the UK’s financial evolution, emphasizing its potential to enable programmable money that transforms value transfer and managementTokenised sterling deposits | UK Finance^[1]. The project also aligns with the UK’s broader efforts to harmonize digital financial systems, including the upcoming Financial Conduct Authority (FCA) regulatory framework for crypto assets, set to take effect in 2026UK Finance Works With Quant For Tokenised Sterling Deposits^[3].

The collaboration reflects a strategic alignment between traditional banking and emerging technologies. Jana Mackintosh, Managing Director of UK Finance, highlighted that tokenised deposits represent a “secure, regulated evolution of the payments landscape,” aligning with Governor Andrew Bailey’s call for innovationTokenised sterling deposits | UK Finance^[1]. Bank executives, including Barclays’ Ryan Hayward and HSBC’s John O’Neill, stressed the importance of maintaining commercial bank money’s central role in the economy while leveraging digital advancementsTokenised sterling deposits | UK Finance^[1]. The initiative also supports the UK’s ambition to lead in setting global standards for tokenised money, with Santander UK’s Paul Horlock noting the potential for “smart money” to enhance retail consumer confidence and flexibilityTokenised sterling deposits | UK Finance^[1].

Regulatory developments further contextualize the project. The UK Treasury’s April 2025 policy note distinguished tokenised deposits from stablecoins and electronic money, ensuring alignment with traditional banking regulationsUK Finance Works With Quant For Tokenised Sterling Deposits^[3]. Meanwhile, the European Union’s Markets in Crypto-Assets (MiCA) regulation, which excludes tokenised deposits from its scope, highlights the UK’s unique approach to integrating digital finance within existing frameworksUK Finance Works With Quant For Tokenised Sterling Deposits^[3]. As the FCA finalizes its crypto rules, the GBTD pilot’s outcomes could inform future policies for tokenisation, bridging the gap between innovation and regulatory clarityUK Finance Works With Quant For Tokenised Sterling Deposits^[3].

The project’s success hinges on demonstrating tangible benefits for customers, businesses, and the economy. By fostering industry collaboration and leveraging blockchain infrastructure, the UK aims to pioneer next-generation financial systems while maintaining trust and security. With live transactions and stakeholder engagement planned through mid-2026, the pilot represents a critical step toward redefining how value is moved and managed in the digital eraTokenised sterling deposits | UK Finance^[1].