A new project led by UK Finance is exploring the use of digital versions of traditional bank deposits tied to the British pound.
According to a press release dated September 26, this pilot is being carried out in partnership with six of the UK’s banks: Barclays, HSBC, Lloyds Banking Group, NatWest, Nationwide, and Santander.
The aim is to test how these tokenized sterling deposits, called GBTDs, could support safer and faster ways to manage and transfer money.
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The pilot will continue until mid-2026 and will study how the digital format might benefit both individuals and businesses across different areas of the financial system.
The technology for this pilot is being developed by Quant
The current pilot will focus on three key areas. First, it will test payments on online marketplaces to determine if digital deposits can reduce fraud and speed up transactions.
Second, the process of switching mortgages between banks will be reviewed to find ways to make it simpler and quicker. Third, the team will examine how digital money can facilitate the settlement of wholesale bond trades.
Quant’s CEO, Gilbert Verdian, noted that the effort is not just about improving existing payments. It is also about introducing new types of money that can include rules and features built directly into their use.
Meanwhile, nine banks across Europe have recently begun working together on a new digital currency tied to the euro. Who are they? Read the full story.
