UK banks to pilot tokenized sterling deposits as lenders explore programmable payments: report

**UK Banks Launch Groundbreaking Tokenized Sterling Pilot Program in Major Blockchain Initiative**

Six leading UK banks have initiated a revolutionary live pilot program for tokenized sterling deposits, marking a significant milestone in the integration of traditional banking with blockchain technology. This pioneering initiative, spearheaded by UK Finance and supported by blockchain experts Quant, EY, and Linklaters, demonstrates the banking sector's accelerating adoption of cryptocurrency and DeFi principles.

The tokenized deposit pilot represents a crucial step toward programmable payments, enabling banks to leverage blockchain infrastructure for more efficient digital transactions. This development positions the UK as a frontrunner in central bank digital currency (CBDC) innovation and cryptocurrency integration within traditional financial systems.

The collaboration between major financial institutions and blockchain technology firms signals growing institutional adoption of digital assets beyond Bitcoin and Ethereum. This tokenization initiative could revolutionize how banks handle deposits, settlements, and cross-border payments, potentially reducing transaction costs and processing times.

The pilot program's success could accelerate broader cryptocurrency adoption across European banking systems, influencing global DeFi markets and establishing new standards for programmable money in traditional finance.