Major UK Institutions Launch Tokenized Deposits Pilot Project According to Global Market Reports, several of the UK’s largest lending institutions are advancing plans to roll out tokenized versions of customer deposits next year. Previously, Bank of England Governor Andrew Bailey had called for prioritizing tokenization technology over stablecoins, emphasizing its development. This latest move by the banks is seen as a response to that call. On Friday, the UK Finance Association revealed that institutions like HSBC, NatWest, and Lloyds Bank have launched pilot projects to use tokenized deposits for payments in online marketplaces. The UK’s tokenized deposit pilot also involves Barclays, Nationwide Building Society, and Santander, with the trial set to run until mid-2026. Additionally, the pilot will explore use cases for tokenized deposits in remortgaging processes and digital asset settlements. Although the UK Financial Conduct Authority (FCA) is not expected to finalize stablecoin regulations until the end of 2026, the Bank of England has clarified that banks can experiment with tokenized deposits under the existing regulatory framework. Currently, several major banks are simultaneously researching tokenized deposits and stablecoins. In July, Citigroup’s CEO stated that the importance of tokenized deposits could surpass that of stablecoins.