Crypto banking UK pilot has officially begun, with UK Finance announcing a groundbreaking project to test tokenized sterling deposits (GBTD) across the country’s leading financial institutions.
The trade association, representing more than 300 firms, confirmed Friday that it has entered the pilot phase to create a digital representation of British pound commercial bank money. Six major banks—Barclays, HSBC, Lloyds Banking Group, NatWest, Nationwide, and Santander—are participating. The initiative is set to run until mid-2026.
The pilot seeks to enhance payment control, strengthen fraud prevention, and improve settlement efficiency for customers, businesses, and the broader UK economy. Infrastructure for the GBTD system will be provided by Quant Network, a UK-based blockchain interoperability platform. Quant previously delivered the first phase of the Regulated Liability Network (RLN), a shared ledger financial market project launched by UK Finance in 2024.
Quant highlighted the ambition behind the effort in its official statement:
“Our involvement underscores Quant’s leadership in digital finance, as we work alongside the UK’s leading institutions to build the infrastructure powering tomorrow’s economy,” the company said.
The pilot will focus on three primary use cases: online marketplace payments, remortgaging processes, and wholesale bond settlement. UK Finance aims to explore how programmable money can fundamentally reshape value transfer within the banking system.
This move comes as the UK Financial Conduct Authority (FCA) finalizes a comprehensive crypto regulatory framework, expected to take effect in 2026. In April 2025, the UK Treasury outlined plans to distinguish tokenized deposits and qualifying stablecoins from electronic money, signaling a clearer path for institutional adoption.
