UK Finance has announced the live pilot phase to deliver tokenised sterling deposits, backed by Barclays, HSBC, Lloyds, NatWest, Nationwide, and Santander.
With a focus on digital asset settlements, person-to-person payments, and remortgaging processes, the pilot project aims to position the UK as a digital leader.
“In the near future, the UK will likely witness the development and adoption of multiple forms of digital money and payments,” said Ryan Hayward, head of digital assets at Barclays.
“We believe commercial banks will have a role to play across all of these forms. Upgrading bank deposits to a digital form will help ensure that commercial bank money remains central to the economy, while customers continue to benefit from the protections and trust associated with this form of money.”
The launch follows earlier phases of the UK Regulated Liability Network (RLN) project, launched by UK Finance in April 2024, and will run until mid-2026.
The pilot aims to demonstrate clear benefits for consumers, businesses, and the wider UK economy, including increased control over payments, enhanced fraud prevention, and faster, more efficient settlement.
It forms a central part of the UK’s drive to deliver next-generation money and payments through GBTD, supporting initiatives such as the Digital Gilt (DIGIT) and the National Payments Vision (NPV).
Fully interoperable with new forms of digital money and payment systems, the platform will also provide tokenisation-as-a-service, enabling participation from institutions without their own tokenised deposit capabilities.
“Money and payments are changing rapidly. We need to be part of that debate to ensure we can meet the evolving needs not only of our customers today, but also of our customers tomorrow,” added Lee McNabb, payments and digital assets Lead at NatWest Group.
