UK Banks Go Digital with Tokenized Sterling! 💸

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UK Finance, the organization that’s basically the financial equivalent of a well-dressed squirrel, has launched a pilot project for tokenized sterling deposits (GBTD). Because nothing says “innovation” like turning pounds into digital confetti. 🎉

The trade group has launched a pilot phase for a tokenized deposits project, which aims to provide a digital representation of traditional pound sterling commercial bank money. Because who doesn’t want their cash to look like a cryptocurrency? 🤔

The pilot is launched in collaboration with six major banks operating in the UK, including Barclays, HSBC, Lloyds Banking Group, NatWest, Nationwide, and Santander. The usual suspects, but now with a digital twist. 🕵️‍♂️

UK Finance plans to run the pilot until mid-2026, aiming to explore benefits to customers, businesses, and the UK economy. Because 2026 is the future, but not too far. 📅

Quant Network to provide infrastructure

UK Finance’s GBTD infrastructure will be provided by Quant Network, a UK-headquartered platform specializing in blockchain interoperability. Because nothing says “trust” like a blockchain that can talk to itself. 🤖

Quant’s involvement builds on its successful delivery of the first phase of the Regulated Liability Network (RLN) – a UK-led initiative for shared ledger-based financial market infrastructure – which UK Finance launched in 2024. Because 2024 was clearly the year of the blockchain. 🗓️

The RLN project engaged all six banks participating in the GBTD initiative, along with other major financial institutions, including Citi, Mastercard, Standard Chartered, Virgin Money, and Visa. Because even Visa can’t resist a little digital chaos. 🤯

Three major use cases

Among the use cases, the GBTD project will test three main areas: online marketplace payments, remortgaging processes, and wholesale bond settlement. Because who doesn’t want to pay for a house with a blockchain? 🏠

According to Quant founder and CEO Gilbert Verdian, the project goes beyond improving payments and is about enabling new forms of programmable money that will “fundamentally transform how value is moved and managed.” Which is just a fancy way of saying, “We’re the cool kids on the block, and we’re here to disrupt.” 😎

“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,” Verdian said. Because nothing says “leadership” like being the first to trip over your own blockchain. 🤸‍♂️

UK FCA to launch crypto regulations in 2026

UK Finance’s tokenized deposits pilot launched amid the Financial Conduct Authority (FCA) finalizing its crypto regulatory framework, with the full regime reportedly expected to come into effect in 2026. Because 2026 is the year everything becomes legal. 📜

In April 2025, the UK Treasury published a policy note on “Future financial services regulatory regime for crypto assets,” highlighting a clear distinction between qualifying stablecoin and tokenized deposits and electronic money. Because clarity is key, and who doesn’t love a good regulatory conga line? 🎶

According to a report by the Financial Times on Sunday, the FCA has been speeding up crypto approvals in response to criticism recently, as the UK is inching closer to adopting a full regulatory framework next year. Because the FCA is now the world’s fastest regulator. 🏃‍♀️

In the meantime, the European Union has been steadily advancing the application of the Markets in Crypto-Assets (MiCA) regulation, which entered full force in late 2024. While MiCA broadly regulates tokenization across various crypto-assets, tokenized deposits fall outside its regulatory scope as they remain governed under traditional banking and deposit frameworks. Because the EU is like a strict teacher, while the UK is the kid who’s always one step behind. 🎓

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2025-09-26 14:33