Several institutions in the UK have initiated a pilot program for tokenized deposits.

Some of the largest loan agencies in the UK are advancing plans to launch a tokenized version of customer deposits next year. Previously, Bank of England Governor Bailey had called for tokenization technology to be placed on top of stablecoins and prioritized for development. The move by banks is a response to this call. The British Financial Association revealed on Friday that institutions such as HSBC, National Westminster Bank, Lloyd's Bank, among others have launched pilot projects to use tokenized deposits for payments in online markets. Although the UK Financial Conduct Authority does not expect to finalize stablecoin regulatory rules until the end of 2026, the Bank of England has stated that banks can experiment with tokenized deposits within the existing regulatory framework.