UK Finance pilot could test tokenized pound sterling deposits with Barclays, HSBC and Lloyds

• GBTD pilot runs until mid‑2026 with six major UK banks testing tokenized deposits

• Quant Network provides the interoperability infrastructure for commercial-bank-backed digital pound equivalents.

• Use cases include online marketplace payments, remortgaging and wholesale bond settlement; pilot assesses customer and economic benefits.

tokenized deposits: UK Finance launches GBTD pilot with six banks and Quant Network to test programmable sterling for payments, settlement and fraud reduction—read more.

UK Finance launches tokenized deposits pilot in partnership with six major banks, including Barclays, HSBC and Lloyds Banking Group.

UK Finance, the trade association representing over 300 financial services firms in the United Kingdom, has launched a joint pilot project for tokenized sterling deposits (GBTD).

UK Finance has launched a pilot phase for a tokenized deposits project, which aims to provide a digital representation of traditional pound sterling commercial bank money, it announced on Friday.

The pilot is launched in collaboration with six major banks operating in the UK, including Barclays, HSBC, Lloyds Banking Group, NatWest, Nationwide and Santander.

UK Finance plans to run the pilot until mid-2026 and aims to explore benefits to customers, businesses and the UK economy, targeting greater control over payments, fraud prevention and more efficient settlement processes.

What are tokenized sterling deposits (GBTD)?

Tokenized deposits are bank-issued commercial money represented as cryptographic tokens on a shared ledger. The GBTD pilot converts traditional sterling deposits into ledger tokens to test programmability, faster settlement and improved fraud controls while remaining governed by existing banking frameworks.

How will the GBTD pilot work and who is involved?

The pilot pairs UK Finance with six major banks and uses Quant Network for infrastructure. Quant builds on its Regulated Liability Network (RLN) work delivered in 2024. The project will operate in controlled environments to test three priority use cases.

What use cases will the pilot test?

The GBTD pilot will examine:

• Online marketplace payments: tokenized deposits aim to speed checkout and reduce reconciliation frictions.

• Remortgaging processes: programmable tokens can automate settlement steps and shorten timelines.

• Wholesale bond settlement: ledger-based settlement could enable near‑real‑time delivery versus payment.

Quant Network to provide infrastructure

UK Finance’s GBTD infrastructure will be provided by Quant Network, a UK-headquartered platform specializing in blockchain interoperability.

Quant’s involvement builds on its delivery of the first phase of the Regulated Liability Network (RLN) — a UK-led initiative for shared ledger-based financial market infrastructure launched in 2024.

The RLN project engaged the six banks participating in GBTD, plus other major financial institutions including Citi, Mastercard, Standard Chartered, Virgin Money and Visa (mentioned as participating institutions in RLN activities).

An excerpt from Quant’s GBTD announcement. Source: Quant Network

“Our involvement underscores Quant’s leadership in digital finance, as we work alongside the UK’s leading institutions to build the infrastructure powering tomorrow’s economy,” Gilbert Verdian, founder and CEO of Quant, said.

Why does this matter for UK regulation and markets?

The GBTD pilot aligns with the UK’s broader effort to clarify crypto and tokenization rules ahead of a formal regime. The Financial Conduct Authority (FCA) is finalizing a crypto regulatory framework expected in 2026.

In April 2025, the UK Treasury published a policy note clarifying distinctions between qualifying stablecoins, tokenized deposits and electronic money. The pilot offers practical data to inform policy and operational readiness.

Note: The European Union’s Markets in Crypto-Assets (MiCA) framework advanced in late 2024, but tokenized deposits remain governed under traditional banking and deposit frameworks and thus sit largely outside MiCA’s scope.

Frequently Asked Questions

How long will the GBTD pilot run?

The GBTD pilot will run until mid‑2026. The phased pilot is designed to test technical interoperability, customer use cases and regulatory compliance in controlled environments.

Will tokenized deposits replace bank deposits?

Tokenized deposits are a digital representation of bank deposits, not a replacement. They remain commercial bank liabilities and operate under existing banking rules, with potential to add programmability and settlement efficiencies.

Key Takeaways

• Practical pilot: GBTD tests tokenized deposits with six major banks to assess real-world benefits.
• Infrastructure: Quant Network supplies interoperability and builds on RLN experience.
• Regulatory context: The pilot informs UK rulemaking as the FCA advances a crypto framework expected in 2026.

Conclusion

UK Finance’s GBTD pilot marks a significant step in exploring tokenized deposits as a programmable layer for sterling commercial bank money. The controlled tests with major banks and Quant Network will produce evidence on settlement speed, fraud reduction and operational feasibility, shaping the UK’s approach to digital finance through mid‑2026 and beyond.