UK banks complete first interbank tokenized-deposit transactions
Published · Updated
What happened
Lloyds, NatWest and Barclays completed interbank transactions using tokenized deposits, including a remortgage process and a simulated e-commerce payment. The transactions used bank-issued digital representations of deposits rather than privately issued stablecoins.
Why it matters
The transactions show that large commercial banks can move tokenized bank money across institutions in practical use cases rather than lab-only tests. That gives regulators, payment firms and bank treasury teams new evidence on settlement speed, programmability and the compliance design choices needed before wider deployment.
Lloyds, NatWest and Barclays completed the first UK interbank transactions using tokenized deposits on 24 September 2026, according to reporting published within the past day. The transactions covered a remortgage flow and a simulated online marketplace payment, testing whether tokenized commercial-bank money can settle instantly and carry conditions in the payment logic. The development is a live proof point for the Bank of England's preference for regulated tokenized deposits over privately issued stablecoins in parts of the payments system.
Watch for
Bank of England statement or speech by a named MPC/FPC official on tokenized deposits or wholesale settlement between 2026-09-25 and 2026-09-28 Financial Conduct Authority update, sandbox note, or consultation reference to tokenized deposits or programmable payments by 2026-09-28 UK Finance publication or member statement naming additional banks joining tokenized-deposit pilots by 2026-09-28 HM Treasury ministerial statement or written answer on stablecoin and tokenized-deposit policy before 2026-09-28
Sources
- Britain's largest banks make first interbank transactions using tokenised deposits · euronews.com
- Parliamentary news · parliament.uk
- Treasury Committee - News · committees.parliament.uk
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