UK Banks Launch Tokenized Pounds Pilot to Cement Global Blockchain Leadership

UK Finance has launched a pilot program for tokenized sterling deposits (GBTD), a digital representation of traditional British pound commercial bank money, in collaboration with six major banks: Barclays, HSBC, Lloyds Banking Group, NatWest, Nationwide, and Santander. The initiative, which began in late 2025 and will run until mid-2026, aims to modernize payments, reduce fraud, and improve settlement efficiency while aligning with the UK’s broader regulatory framework for crypto-assetsUK Finance Launches Pilot for Tokenised Sterling Deposits^[1]. The project is positioned as a critical step in integrating blockchain technology into mainstream financial systems without disrupting existing banking structuresUK Finance Pilots Tokenized Sterling Deposits with Six Major Banks^[2].

Quant Network, a UK-based blockchain interoperability company, will provide the infrastructure for the GBTD pilot. The firm previously supported the Regulated Liability Network (RLN), a shared ledger-based financial market framework tested in 2024 with the same banks and additional institutions such as Citi, Mastercard, and Visa. This experience positions Quant to build on prior successes, enabling the pilot to explore programmable money that could redefine how value is managed and transferredUK Finance Teams with Major Banks to Launch Groundbreaking …^[3]. Gilbert Verdian, Quant’s founder and CEO, emphasized the project’s potential to “fundamentally transform how value is moved and managed,” highlighting its role in advancing digital financeUK Partners with Banks to Pilot Tokenized Sterling Deposits^[4].

The pilot will focus on three key use cases: online marketplace payments, remortgaging processes, and wholesale bond settlements. For online marketplaces, tokenized deposits could enhance transaction security and speed, reducing fraud risks. In remortgaging, the technology aims to streamline approvals and disbursements by minimizing intermediary involvement. For wholesale bond settlements, tokenized deposits may facilitate faster asset transfers between institutions, lowering operational costsQuant Backs UK’s Tokenized Sterling Project^[5]. These applications reflect a strategic effort to address pain points in current financial systems while testing the scalability of programmable money.

The initiative coincides with the UK Financial Conduct Authority (FCA) finalizing a regulatory regime for crypto-assets, slated for implementation by 2026. The UK Treasury has already clarified that tokenized deposits differ from electronic money, ensuring they remain under traditional banking rules. This distinction aligns the GBTD project with existing financial systems while exploring new technologies. Meanwhile, the European Union’s Markets in Crypto-Assets (MiCA) regulation, which excludes tokenized deposits from its scope, highlights the UK’s proactive approach to creating a tailored regulatory path for digital commercial bank moneyUK Finance and 6 Major Banks Launch Tokenized Sterling Pilot …^[6].

UK Finance’s managing director of payments, Jana Mackintosh, stressed the importance of collaboration between the private sector and regulators. The pilot aims to generate practical outcomes that could be adopted at scale, building on the RLN’s earlier success in creating a regulated environment for distributed ledger technology. By mid-2026, the project will assess how tokenized deposits can enhance the integrity of commercial bank money while supporting wider adoption of wholesale CBDCs and tokenized assetsUK Finance Launches Pilot for Tokenised Sterling Deposits^[7].

The GBTD pilot underscores the UK’s ambition to position itself as a global leader in tokenized currency innovation. As the project progresses, its findings are expected to influence future policies for digital financial services, shaping the evolution of programmable payments and asset management. With the UK’s regulatory and technological frameworks advancing in parallel, the success of this initiative could set a precedent for integrating blockchain into traditional finance while maintaining stability and oversight.