By Phoebe Veers
The largest lenders in London (Reuters) -Britrain are advancing with plans to launch tokenized versions of customer deposits next year, a measure that follows the plea of the governor of Bank of England Andrew Bailey to prioritize technology on the prints.
Tokenization generally refers to the creation of digital representations of assets such as deposits, actions and bonds that are stored in a block chain. Proponents say they can make transactions faster, cheaper and safer.
Banks, including HSBC, Natwest and Lloyds, have launched a pilot using tokenized deposits for payments through online markets, the United Kingdom industry group said Friday.
Bailey Skeptical of Stablecoins
The pilot arrives after Bailey said in July that although “he was not against Stablecoins,” he could not understand his need and believed that tokenization offered more value.
Stablecoins, a type of cryptocurrencies fixed to a fiduciary currency, have retired in popularity. The genius law of the president of the United States, Donald Trump, has brought more regulatory clarity and has led several US banks to say that they could enter a market dominated by non -banking players.
On Thursday, a group of European lenders also announced plans to launch a stablecoin called in euro.
Bailey warned that Stablecoins takes money from the banking system and could threaten financial stability. In an interview with the Times newspaper in July, he warned the banks that they did not issue their own Stablecoins.
While the United Kingdom’s financial behavior authority is not expected to end the stable regulation until the end of 2026, the BOE said banks may experience with tokenized deposits within the existing regulation.
A senior official of the United Kingdom bank said that the tokenized deposits lacked the “brand image of a stablecoin”, but they were an important technological update.
Many great lenders are examining both. The CEO of Citi said in July that the tokenized deposits were probably more important than a stablecoin.
Tokenized deposits had not reached their maximum potential because they could not interact among financial institutions, but the new pilot resolves this, said Manish Kohli, head of HSBC global payment solutions.
While the pilot currently focuses on domestic cases, Kohli said technology showed the greatest promise in cross -border transactions. “That’s where we are seeing a lot of customer demand,” he told Reuters.
The tokenized deposit pilot of Great Britain who also involves Barclays, throughout the country and Santander, will extend until mid -2026. The pilot will also test applications in the process of remorrance and liquidation of digital assets.
(Tagstotranslate) Customer deposits
Source link