71% of UK finance leaders expect tokenization to reshape financial services: Lloyds
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
A Lloyds Banking Group survey found that 71% of senior finance leaders at major UK institutions expect tokenization to reshape financial services. The survey of 100 decision-makers across banks, insurers, asset managers, and financial sponsors highlighted benefits like faster payments, settlement, and better collateral and liquidity management. Lloyds has also conducted pilot projects using tokenized deposits to buy tokenized UK government bonds.
Why it matters
The source explains that tokenization could increase efficiency by freeing up capital and liquidity in financial transactions, potentially transforming settlement infrastructure at scale. UK policymakers are actively promoting tokenization to enhance the country’s financial infrastructure and economic output, with plans for interoperable payments and government-backed tokenized bonds.
Key context
The survey follows recent UK government and Bank of England initiatives to extend settlement infrastructure availability and develop interoperable payment systems combining tokenized and traditional money. A government task force projects a £33 billion boost to the UK economy by 2035 from tokenized finance. Coordination efforts between UK and US authorities on cross-border tokenized asset regulation are also underway.
Key numbers and entities
Lloyds Banking Group; 71% of surveyed UK finance leaders; 100 senior decision-makers polled; 60% cited faster payments and settlement benefits; 41% cited improved collateral and liquidity; £33 billion ($44 billion) potential economic boost by 2035; planned UK tokenized government bond by 2027; Bank of England; Archax and Canton Network (pilot partners); UK and US Treasuries.
What remains unclear
The source does not specify detailed timelines for industry-wide adoption, the exact standards or interoperability solutions to be adopted, or the regulatory frameworks that will govern tokenized finance at scale. The specific challenges banks and asset managers face in scaling these solutions remain unaddressed.