Major UK banks execute world’s first interbank customer transactions using tokenized sterling deposits

“These live transactions show how tokenized deposits can deliver practical, real-world benefits, contingent payments that give customers greater control over their money,” said Lucy Rigby, economic secretary to the Treasury.

For businesses and customers, tokenised deposits have the potential to speed up settlement, improve cash-flow management and provide more convenient, transparent and secure ways to pay.

“Tokenized deposits have the potential to play a key role in the evolution of digital money and payments in the U.K. and beyond,” said Gilbert Verdian, founder and CEO of Quant,

Tokenized deposits are digital records of money already held in a bank account. Unlike stablecoins, they remain a liability of the issuing bank and retain the protections attached to conventional deposits.