- UK Finance launches a pilot with six banks to test tokenised sterling deposits (GBTD) through mid-2026.
- Quant Network will provide the infrastructure for a digital pound pilot covering payments, remortgaging and bond settlement.
- The FCA is preparing a crypto regulatory framework by 2026 as the UK explores tokenised deposits for safer, more efficient transactions.
UK Finance has launched a live pilot programme for tokenised sterling deposits (GBTD), marking a significant step in integrating digital innovation into traditional banking. Announced on Friday, the pilot runs until mid-2026 and involves six major banks: Barclays, HSBC, Lloyds Banking Group, NatWest, Nationwide and Santander.
The programme will evaluate how tokenised deposits—digital representations of commercial bank money denominated in pound sterling—can modernise payments, reduce fraud, improve settlement processes and give consumers greater control over their funds. The pilot also aims to align with the UK government and regulator’s broader push to establish clear rules for crypto-assets and tokenisation by 2026.
Six banks test digital pound deposits
The GBTD pilot is designed to create and test a secure digital representation of commercial bank money in sterling. By collaborating with the participating banks, UK Finance seeks to measure whether tokenised deposits can deliver efficiency improvements for individual customers, businesses and the wider UK economy.
Expected benefits include safer, faster transactions, streamlined settlement processes and improved reconciliation between counter-parties. The programme will explore practical use cases and operational models that could be integrated with existing banking systems while preserving established regulatory and supervisory frameworks.
Quant Network, a UK-based blockchain interoperability firm, will supply the underlying infrastructure for the pilot. The company previously supported the Regulated Liability Network (RLN), a shared-ledger financial market framework trialled in 2024 with several of the same banks and other institutions including Citi, Mastercard, Standard Chartered, Virgin Money and Visa.
Quant Network to build infrastructure
Quant’s technology will enable trials across three priority use cases: online marketplace payments, remortgaging processes and wholesale bond settlement. The pilot will test not only basic payment flows but also programmable-money features that can add new layers of automation and conditional settlement to value transfers.
By introducing programmable elements, tokenised deposits could change how value is managed and settled—potentially delivering efficiency gains and new settlement models that support both retail and wholesale activity. The GBTD pilot builds on lessons from the RLN trial, applying those findings to create more operationally focused outcomes that could be scaled if proven effective.
Pilot linked with upcoming regulations
The pilot’s launch coincides with the Financial Conduct Authority (FCA) developing a regulatory regime for crypto-assets and tokenised instruments, with implementation targeted for 2026. In April 2025 the Treasury published a policy note clarifying distinctions between qualifying stablecoins, tokenised deposits and traditional electronic money—an important step in defining how tokenised commercial bank money will be treated under UK law.
The FCA has accelerated its preparations for crypto approvals following criticism of earlier delays, and the GBTD pilot complements this regulatory work by providing practical evidence on how tokenised deposits can operate within regulated banking systems. While the EU has already implemented Markets in Crypto-Assets (MiCA) rules covering many tokenisation topics, tokenised deposits typically remain governed by established deposit and banking rules rather than MiCA—underscoring the UK’s approach to creating a clear, bank-focused pathway for tokenised commercial money.
What the project aims to achieve
Planned to run for at least 18 months, the pilot will produce findings to inform future policy and industry decisions. By testing tokenised deposits in real-world scenarios, UK Finance and its partners aim to understand operational, legal and regulatory implications and to identify how distributed ledger technology might be integrated into mainstream financial services without displacing existing banking structures.
The project is framed as an experiment to evaluate practical benefits, risks and technical requirements. If successful, the GBTD pilot could lay the groundwork for broader adoption of tokenised commercial bank money, enabling safer, faster and more flexible payment and settlement methods across the UK financial system.