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      UK Banks Complete First Transactions Using Tokenised Deposits

      Seven major banks in the United Kingdom, including Barclays, HSBC, Lloyds, Monzo, Nationwide, NatWest, and Santander, have successfully conducted interbank transactions using tokenised deposits. This marks a significant milestone in the Great British Tokenised Deposit project, which utilizes a platform developed by Quant. The tests included automated remortgage settlements and conditional payments for purchases, showcasing the potential for programmable money in banking operations.

      Tokenised deposits represent traditional bank deposits recorded on a blockchain-style ledger, maintaining the same protections as standard accounts. This innovation aims to address the competition posed by stablecoins, which are issued by private companies and lack bank deposit protections. In contrast, central bank digital currencies (CBDCs), such as a potential digital pound, would be issued directly by the Bank of England, representing a claim on the state.

      The participating banks plan to establish a governing company and a rulebook, with intentions to issue three digital bonds settled with tokenised deposits by early 2027. This development could pave the way for the use of tokenised deposits in real financial transactions, moving beyond trial phases. Meanwhile, discussions regarding the digital pound are ongoing, with potential holding limits being considered.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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