Several institutions in the UK have launched a pilot project for tokenized deposits

ChainCatcher news, according to reports from Global Market, several 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 bank 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 launched pilot projects to use tokenized deposits for payments through online markets. This tokenized deposit pilot 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 remortgage process and digital asset settlement.

Although the Financial Conduct Authority (FCA) in the UK expects to finalize stablecoin regulatory rules by the end of 2026, the Bank of England has made it clear 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.