71% of UK finance leaders expect tokenization to reshape financial services: Lloyds
A Lloyds survey found that faster payments and settlement are the most significant perceived benefits of tokenization, as the UK builds infrastructure for tokenized finance.
A Lloyds survey has revealed that 71% of UK finance leaders anticipate tokenization to significantly transform financial services as the nation develops its infrastructure for tokenized finance. The survey, which polled 100 senior decision-makers from major UK banks, insurers, asset managers, and financial sponsors, found that faster payments and settlement were the most valuable perceived benefits of tokenization.
Nearly three-quarters of the respondents believe tokenization will reshape financial services, with banks and asset managers increasingly exploring blockchain-based infrastructure for payments, settlement, and liquidity management. Faster payments and settlement were cited by 60% of respondents as the biggest potential benefit, while 41% highlighted improved collateral and liquidity management.
Lloyds stated that transitioning assets and payments to digital infrastructure could free up capital and liquidity currently tied up in financial transactions, enabling institutions to deploy those resources elsewhere. Rob Hale, co-head of global markets at Lloyds, added that the next step is to transform individual use cases into scalable infrastructure with interoperability and common standards to connect digital and traditional markets.
Lloyds has already tested the technology, conducting the UK's first public blockchain transaction using tokenized deposits to purchase a tokenized UK government bond alongside Archax and Canton Network. As UK policymakers push to move tokenization beyond pilot projects into the country's financial infrastructure, the Bank of England aims to extend its core settlement infrastructure toward near-24/7 availability.
A government payments blueprint calls for tokenized and traditional forms of money to operate within an interoperable payments system. According to a government-backed industry task force, leadership in tokenized finance could add up to 33 billion British pounds ($44 billion) to the UK's annual economic output by 2035, with the country aiming for its first tokenized government bond by early 2027.
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