UK banks complete first interbank tokenised deposits transactions
Global Banking & Finance Review
Britain's largest banks have completed the first known interbank transactions using tokenised deposits, executing two mortgage remortgages and a simulated person-to-person marketplace payment under the Great British Tokenised Deposit pilot run by UK Finance. The tests used programmable deposits that can lock and release funds on condition, a feature highlighted as reducing fraud risk. Organisers plan to form a company, create a rulebook and move to production, and participating banks expect to issue three digital bonds tradable and settleable with tokenised deposits in the first quarter of 2027, attracting international interest.
UK banks piloted tokenised deposits for interbank settlement and programmable payments
Context
Banks have run pilots to put deposit tokens on blockchains. These pilots showed conditional settlement and remortgage flows. Next steps are a company, a rulebook and planned digital bond issuance in 2027.
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