Programmable bank deposits go live – will blockchain finally shrink fraud?

**UK Banks Launch Blockchain-Powered Sterling Deposits to Combat Cryptocurrency Fraud**

British financial institutions are revolutionizing digital payments through a groundbreaking blockchain pilot program that could significantly reduce fraud in the cryptocurrency sector. UK Finance has initiated a live trial of tokenised sterling deposits, running through mid-2026, marking a pivotal moment for traditional banking's integration with DeFi technology.

London-based Quant will spearhead the programmable money infrastructure, enabling banks to create smart contract-enabled deposits that automatically execute predetermined conditions. This blockchain innovation represents a major shift toward regulated digital assets, potentially bridging the gap between traditional banking and the cryptocurrency ecosystem.

The pilot program addresses growing concerns about fraud in Bitcoin and altcoin transactions by introducing programmable controls directly into bank deposits. Unlike volatile cryptocurrencies, these tokenised sterling deposits maintain stable value while leveraging blockchain's transparency and security benefits.

This development could accelerate institutional adoption of blockchain technology, positioning UK banks at the forefront of the digital asset revolution. Market analysts suggest this initiative may influence global banking standards, potentially creating new opportunities for cryptocurrency integration while maintaining regulatory compliance and fraud prevention measures.