UK Banks Continue Development of Tokenised Deposits Following Bank of England's Stablecoin Caution
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 26 2025
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Source: Reuters
Tokenised Deposits Initiative: Major UK banks, including HSBC, NatWest, and Lloyds, are launching a pilot program for tokenised customer deposits, which are digital representations of assets stored on a blockchain, aimed at enhancing transaction efficiency and safety.
Regulatory Context and Concerns: Bank of England Governor Andrew Bailey has emphasized the importance of tokenisation over stablecoins, citing potential risks to financial stability from stablecoins, while allowing banks to experiment with tokenised deposits under existing regulations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
