UK Finance Pilots Tokenised Sterling Deposits with 6 Banks
UK Finance has launched an 18-month pilot for tokenised sterling deposits with six major banks, including Barclays, HSBC, Lloyds, NatWest, Nationwide and Santander. The programme aims to create a digital pound representation of commercial bank money and tests use cases such as online marketplace payments, remortgaging and wholesale bond settlement. Quant Network will supply the blockchain interoperability infrastructure via its Regulated Liability Network, enabling programmable money features that enhance payment control, reduce fraud and speed up settlement times. The pilot, running until mid-2026, coincides with the Financial Conduct Authority’s planned crypto-asset regulations, highlighting the UK’s push to integrate tokenisation into mainstream banking. By distinguishing tokenised sterling deposits from stablecoins and e-money under existing banking law, the initiative could set new standards for institutional adoption of digital cash and influence future market stability for tokenised sterling deposits.
Neutral
While the 18-month pilot for tokenised sterling deposits represents significant institutional adoption of blockchain-based digital cash and underlines the UK’s regulatory push, it does not directly involve tradable cryptocurrencies or impact existing token markets. The programme focuses on banking infrastructure, programmable money features and regulatory compliance, meaning it is unlikely to trigger immediate price movements in major crypto assets. In the short term, traders may view this as a positive signal for digital asset innovation but neutral for crypto market prices, as the pilot uses bank-issued tokens rather than public blockchain coins. Long term, success could boost confidence in tokenisation technology and potentially lead to broader acceptance of digital currencies, offering a bullish backdrop for blockchain projects, but without directly altering current token valuations.