According to Reuters, major UK banks including Lloyds, NatWest, and Barclays have successfully completed their first interbank settlement transactions using tokenized deposits. This demonstration is part of a tokenized deposit project spearheaded by UK Finance, the UK financial industry association. Lloyds, NatWest, and Barclays completed two mortgage refinancing transactions using tokenized deposits, while three other banks, including HSBC, tested peer-to-peer payments assuming online product purchases. Funds are automatically disbursed when pre-set conditions, such as product receipt or completion of a real estate transaction, are met. Participating banks plan to issue three types of digital bonds that can be traded and settled with tokenized deposits in the first quarter of 2027.
