UK banks complete first live transactions using tokenized deposits

Seven major United Kingdom banks have successfully completed the first live interbank customer transactions using tokenized sterling deposits. The initiative, known as the Great British Tokenised Deposit (GBTD), was convened by industry body UK Finance and utilizes a shared platform built by Quant.

The participating banks include Barclays, HSBC UK, Lloyds Banking Group, Monzo, Nationwide, NatWest, and Santander. During the pilot, the banks executed two remortgage completions where funds were automatically released only upon confirmation of property transfers, and a customer-to-customer marketplace purchase where funds were held until delivery was confirmed.

Unlike stablecoins, tokenized deposits are digital records of existing commercial bank money that maintain the legal protections and regulatory status of conventional deposits. The Bank of England has supported this approach as a secure alternative to private stablecoins. The project aims to reduce manual settlement delays and mitigate fraud through conditional, automated payments.