UK Banks Complete First Interbank Tokenised Deposit Transactions

Lloyds, NatWest and Barclays executed the first interbank transfers of tokenised deposits, moving pounds between rival lenders on blockchain rails in two remortgage transactions, industry body UK Finance said on September 24, 2026. A separate group including HSBC ran a customer-to-customer payment simulating an online marketplace purchase, where funds were held and released to the seller only after delivery was verified. Tokenised deposits carry the same legal status as ordinary bank deposits but settle instantly and can be programmed to execute on set conditions. The "Great British Tokenised Deposit" project, launched in 2026, connects the systems of Barclays, HSBC, Lloyds, Monzo, NatWest, Nationwide and Santander. The Bank of England has signalled a preference for tokenised deposits over privately issued stablecoins. Participating lenders plan to establish a company and governing rulebook, targeting three digital bonds in the first quarter of 2027 to be traded and settled via tokenised deposits.