Quant to Power UK’s Tokenized Sterling Deposit Project With Major Banks

Updated 2 hours ago by · 2 mins read

Quant will provide the core technology for a UK pilot testing tokenized sterling deposits with banks like HSBC, Barclays, and Lloyds.

Blockchain infrastructure firm Quant QNT $90.59 24h volatility: 0.5% Market cap: $1.32 B Vol. 24h: $73.43 M has been selected to provide the core technology for a new financial market initiative focused on tokenized sterling deposits in the United Kingdom.

Industry group UK Finance leads the project in collaboration with several of the country’s largest lenders, including Barclays, HSBC, Lloyds Banking Group, and NatWest, and will run until mid-2026.

According to the official announcement, the project will test three transformative use cases to show clear benefits for the UK economy. The pilot will explore using tokenized money to reduce fraud in online marketplace payments, streamline property transactions during remortgaging, and accelerate the settlement of digital assets.

Gilbert Verdian, Quant’s founder and CEO, suggested the project marks a key moment for the UK’s financial sector. He explained that the goal is to create a new type of programmable money to reshape how value is managed and transferred.

In a comment to Reuters, a managing director at UK Finance, Jana Mackintosh, said that the collaboration positions the UK to become a global leader in establishing standards for tokenized currency.

UK Banks Prioritize Tokenization

The push for tokenized deposits follows recent comments from the Bank of England’s (BoE) Governor, Andrew Bailey. He has publicly stated a preference for banks to experiment with tokenization rather than stablecoins, which he has warned could pull money out of the regulated banking system and potentially threaten financial stability.

While the BoE allows banks to experiment with tokenized deposits under existing rules, a decision on formal stablecoin regulation is not expected until the end of 2026.

The pilot will officially run until mid-2026, giving banks and regulators time to assess the technology’s performance. While the sources do not specify the exact steps after the pilot, its results are expected to shape the UK’s financial future.

This formal exploration of tokenized money comes as the private sector also deepens its involvement, with some UK firms adding Bitcoin BTC $109 146 24h volatility: 2.2% Market cap: $2.17 T Vol. 24h: $70.54 B to their corporate treasuries.

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