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.
Nearly three-quarters of major UK financial institutions expect tokenization to reshape financial services, as banks and asset managers increasingly explore blockchain-based infrastructure for payments, settlement and liquidity management.
The finding comes from an annual survey by Lloyds Banking Group, the UK’s largest financial services provider, which polled 100 senior decision-makers across major UK banks, insurers, asset managers and financial sponsors.
Faster payments and settlement emerged as the biggest potential benefit, cited by 60% of respondents, while 41% pointed to improved collateral and liquidity management.
Lloyds said moving assets and payments onto digital infrastructure could also free up capital and liquidity tied up in financial transactions, allowing institutions to deploy those resources elsewhere.
“The next phase is about turning those individual use cases into infrastructure that works at scale, with the interoperability and common standards needed to connect digital and traditional markets,” said Rob Hale, co-head of global markets at Lloyds.
Lloyds has also tested the technology directly. Earlier this year, the bank worked with Archax and Canton Network on what it described as the UK’s first public blockchain transaction using tokenized deposits to purchase a tokenized UK government bond.