UK banks complete first interbank transactions using tokenised deposits

Lloyds: Lloyds Banking Group is a major UK retail and commercial bank providing a range of financial services including mortgages and payments. It participated in the initial trials of interbank tokenised deposit transfers, including mortgage transactions, as part of the Great British Tokenised Deposit project coordinated by UK Finance. NatWest: NatWest Group is one of Britain's largest banks, offering personal and business banking products such as accounts, loans, and mortgages. It joined Lloyds and Barclays in completing the first interbank transactions using tokenised deposits for mortgage-related activities in the UK Finance-led pilot. Barclays: Barclays PLC is a leading UK-based multinational bank focused on consumer banking, credit cards, and investment services. It contributed to the pioneering tokenised deposit interbank transfers, helping demonstrate the technology's potential for more efficient mortgage and payment processes. UK Finance: UK Finance is the trade association representing the UK's banking, finance, and payments sectors, advocating for industry standards and innovation. It runs the Great British Tokenised Deposit project that enabled the recent successful trials of blockchain-based deposit transfers among member banks. Jana Mackintosh: Jana Mackintosh serves as managing director for Payments and Innovation at UK Finance, overseeing initiatives on digital payments and financial technology. She highlighted how programmable features in tokenised deposits could reduce fraud risks in simulated transactions during the project trials. Expansion Plans: Participating banks intend to create a dedicated company with a rulebook and governance framework to scale the tokenised deposit system beyond the pilot phase. Technology Benefits: Tokenised deposits maintain the same legal status as traditional bank deposits while enabling programmable features that support automated releases of funds upon completion of conditions such as property transactions. Regulatory Preference: The Bank of England encourages banks to develop tokenised deposits as an on-chain innovation within the existing banking system rather than relying on privately issued stablecoins.