Archive · 26 Sep 2025
UK Banks Continue Tokenized Deposit Plans Despite Stablecoin Warnings
Imagine banks are creating digital versions of your money.
This is called tokenization.
Banks like HSBC and NatWest are trying this out in the UK, hoping to make moving money easier.
The Bank of England's boss, Andrew Bailey, likes this idea.
He's not so keen on something called stablecoins.
Stablecoins are like cryptocurrencies, but some banks are planning their own.
The Bank of England is cautious about stablecoins, worrying they could cause problems.
The tokenization pilot will test how these digital money versions work for payments and other banking tasks.
UK banks are moving forward with tokenized deposit plans.
The Bank of England prefers tokenization to stablecoins.
HSBC, NatWest, and Lloyds are running a pilot program.
Tokenization aims to make transactions faster and cheaper.
The pilot will test applications in payments, remortgaging, and asset settlement.
- Who
- Major UK banks and the Bank of England
- What
- Are pushing forward with tokenized deposits.
- When
- Pilot program will run until mid-2026, with plans to launch next year.
- Where
- United Kingdom
- Why
- To make transactions faster, cheaper, and safer.
- Participating Banks
- HSBC, NatWest, Lloyds, Barclays, Nationwide, Santander
- BoE Governor
- Andrew Bailey
- Pilot Duration
- Until mid-2026
- Pilot Applications
- Payments, remortgaging, digital asset settlement