A survey by Lloyds Banking Group found that 71% of UK finance leaders believe tokenization will reshape financial services. The poll, which surveyed 100 senior decision-makers across major banks, insurers, asset managers, and financial sponsors, highlighted faster payments and settlement as the primary benefit of tokenization, cited by 60% of respondents. Improved collateral and liquidity management was also a key advantage, noted by 41% of participants. Lloyds emphasized that moving assets and payments onto digital infrastructure could free up capital and liquidity, allowing institutions to redeploy those resources. The bank has tested tokenization technology, working with Archax and Canton Network on the UK's first public blockchain transaction using tokenized deposits to purchase a tokenized UK government bond. The survey comes as UK policymakers push for tokenization beyond pilot projects, with the Bank of England proposing to extend its core settlement infrastructure toward near-24/7 availability. A government-backed task force estimated that leadership in tokenized finance could add up to 33 billion pounds to the UK's annual economic output by 2035. The UK is also seeking greater coordination with the US on tokenized finance, with both countries recommending a private-sector group to test cross-border uses of tokenized assets.
The findings align with broader efforts to integrate tokenization into financial infrastructure, as the UK and US work to establish common standards and regulations for digital assets. The Bank of England and the US have both called for interoperable payments systems that include both tokenized and traditional forms of money. Lloyds co-head of global markets, Rob Hale, emphasized the need for interoperability and common standards to connect digital and traditional markets.
The survey underscores the growing interest in blockchain-based infrastructure for payments, settlement, and liquidity management. As the UK moves toward a more digital financial landscape, the role of tokenization in reshaping financial services is becoming increasingly prominent. The Bank of England and other regulators are working to ensure that tokenization is integrated into the country's financial infrastructure in a way that supports both innovation and stability.