UK banks complete first interbank transactions using tokenised deposits

Overview

Updated Sep 24

Seven of Britain's biggest banks moved money between themselves using tokenised deposits for the first time on September 24. The transactions—two remortgage completions and a simulated online marketplace purchase—ran on a shared blockchain platform built by Quant for UK Finance's Great British Tokenised Deposit project.

The money is programmable. In the remortgage cases, funds were locked in the borrower's account and released automatically at completion. In the marketplace case, payment only went through when the goods changed hands, cutting the manual checks and settlement delays that slow today's payments.

Why it matters

If tokenised deposits scale, mortgages and online purchases can settle automatically and fraud-proof, cutting days of delay from everyday payments.

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Key Indicators

Banks participating in GBTD

Barclays, HSBC UK, Lloyds, Monzo, Nationwide, NatWest, and Santander

Live transactions completed

Two remortgage completions and one marketplace purchase

Q1 2027

Target for digital bond issuance

Three digital bonds to be traded and settled with tokenised deposits

Voices

Curated perspectives — historical figures and your fellow readers.

Organizations Involved

UK Finance

Trade association

Convened the GBTD project

UK Finance is the trade association for the British banking and financial services industry, and it convened the Great British Tokenised Deposit project.

Quant

Technology company

Developed the GBTD platform

Quant is the technology firm that built the shared GBTD platform for tokenised commercial bank money.

Bank of England

Central bank

Prefers tokenised deposits over stablecoins

The Bank of England has said it would rather banks innovate with tokenised deposits than with privately-issued stablecoins.

Timeline

1 event Latest: September 24th, 2026 · 2 months ago

September 2026
Seven UK banks complete first live interbank transactions using tokenised deposits
Latest Milestone

Two remortgage completions and a marketplace purchase ran on the GBTD platform, with programmable funds released only when conditions were met.
September 24th, 2026

Scenarios

GBTD moves to full production with digital bonds

Likely Resolves by Q1 2027

Discussed by: UK Finance and Quant, which have announced plans to establish a company and rulebook

The GBTD project establishes a permanent company with a governing rulebook, moving from pilot to production. The seven banks issue three digital bonds in Q1 2027 that are traded and settled with tokenised deposits, demonstrating delivery-versus-payment settlement. Further pilots link tokenised customer money with digital assets for seamless exchange.

Pilot stalls amid regulatory caution

Possible Resolves by Q2 2027

Discussed by: Analysts watching the Bank of England and Financial Conduct Authority

The Bank of England or FCA signals that tokenised deposits need more regulatory work before scaling, or the banks decide the commercial case is weak. The pilot continues in limited form but does not reach full production, and the digital bond issuance is delayed or cancelled.

Stablecoins gain ground despite BoE preference

Unlikely Resolves by End of 2027

Discussed by: Crypto market observers and payments analysts

Despite the Bank of England's stated preference for tokenised deposits, a stablecoin issuer wins regulatory approval for UK retail payments, or the BoE shifts its stance. Stablecoins capture market share that tokenised deposits were meant to serve, and the GBTD project loses momentum.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

2024-2025

UK Regulated Liability Network (2024-2025)

The UK Regulated Liability Network was an earlier industry pilot exploring how tokenised deposits and central bank money could interoperate on a shared ledger. It involved many of the same banks and tested the technical and legal foundations for tokenised commercial bank money.

Then

The RLN phases proved the concept and laid the groundwork for the GBTD project.

Now

The RLN's findings informed the design of the GBTD platform and the Bank of England's approach to tokenised money.

Why this matters now

GBTD is the direct successor to the RLN, applying its lessons to live customer transactions.

2019-present

JPMorgan's JPM Coin (2019)

JPMorgan launched JPM Coin in 2019, a digital token representing US dollar deposits that could move between institutional clients on a private blockchain. It was one of the first major bank-issued tokenised deposits.

Then

JPM Coin initially handled a small volume of institutional payments.

Now

It demonstrated that banks could issue their own digital money, and JPMorgan has since expanded it to euro and other currencies.

Why this matters now

JPM Coin showed the technical feasibility of tokenised deposits years before the UK's interbank trial, but the GBTD project goes further by connecting multiple banks on a shared platform.

May 2008

UK Faster Payments (2008)

The UK launched Faster Payments in 2008, a system that cut interbank payment settlement from three days to near-instant for retail transactions. It was a major shift in how British banks moved money.

Then

Faster Payments handled millions of transactions in its first years.

Now

It became the backbone of UK retail payments, processing billions of transactions annually.

Why this matters now

Faster Payments showed how a shared infrastructure change can transform everyday payments. Tokenised deposits aim to add programmability on top of that speed.