UK Finance, the trade association for the United Kingdom’s financial sector, has officially launched a pilot program for Tokenized Sterling Deposits (GBTD). This ambitious project aims to create a digital representation of traditional British pound commercial bank money using distributed ledger technology (DLT).
The pilot phase, which is expected to run until mid-2026, involves six of the UK’s largest banks: Barclays, HSBC, Lloyds Banking Group, NatWest, Nationwide, and Santander.
The initiative is designed to explore significant benefits for consumers, businesses, and the wider UK economy, including enhanced control over payments, advanced fraud prevention, and more efficient settlement processes.
Quant Network, a UK-based specialist in blockchain interoperability, is providing the foundational infrastructure for the GBTD project. This builds on Quant’s prior work in delivering the first phase of the Regulated Liability Network (RLN), a broader UK-led effort for shared ledger financial infrastructure that included the current participating banks, along with institutions like Citi, Mastercard, and Visa.
The pilot will test three major real-world applications for tokenized deposits: Online Marketplace Payments, Remortgaging Processes, and Wholesale Bond Settlement.
Gilbert Verdian, Founder and CEO of Quant, stated that the project is not just about improving payments, but enabling new forms of programmable money that will “fundamentally transform how value is moved and managed.”
The launch of the GBTD pilot comes as the UK’s regulatory landscape for digital assets rapidly evolves.
The Financial Conduct Authority (FCA) is currently finalizing a comprehensive crypto regulatory framework, which is reportedly anticipated to take full effect in 2026. The UK Treasury has already established a clear distinction in its policy between tokenized deposits, electronic money, and stablecoins.
