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ZEC $1,284 Lloyds survey finds 71% of UK finance leaders expect tokenization to reshape services
A Lloyds survey of 100 senior decision-makers found faster payments and settlement ranked as tokenization's biggest perceived benefit.
Key takeaways
- 71% expect change. The Lloyds survey found 71% of respondents expect tokenization to reshape financial services.
- Settlement leads. 60% named faster payments and settlement as the biggest opportunity, ahead of collateral and liquidity management at 41%.
- Spending rises. 64% plan to increase capital expenditure over the next 12 months, and 77% now treat new technology investment as a growth priority.
What happened
A Lloyds Banking Group survey found that 71% of UK financial institutions expect tokenization to reshape financial services. The bank said its tenth annual Financial Institutions Sentiment Survey questioned 100 senior decision-makers at major UK banks, insurers, financial sponsors, and asset and wealth managers.
Faster payments and settlement was the most cited benefit, named by 60% of respondents. Another 41% pointed to better collateral and liquidity management.
Lloyds said digital infrastructure could cut the time and resources needed to move money and assets, releasing capital held up while transactions complete. Rob Hale, co-head of global markets at Lloyds, said the next stage requires institutions to turn separate applications into infrastructure that works at scale.
Why it matters
The survey lands as UK policymakers push tokenization beyond pilot projects. The Bank of England proposed extending its core settlement infrastructure toward near-24/7 availability in May, and a government-backed industry task force estimated in July that leadership in tokenized finance could add as much as 33 billion British pounds ($44 billion) to the UK's annual economic output by 2035.
UK banks have already tested the plumbing. UK Finance's interbank tokenized deposit tests included two remortgage transactions involving Lloyds, NatWest and Barclays, and the initiative includes Barclays, HSBC, Lloyds, NatWest, Nationwide and Santander. Participating banks plan three digital bond issues in the first quarter of 2027 that can settle using tokenized deposits.
What the data shows
The survey recorded 77% of respondents treating investment in new technologies as a growth priority, compared with 41% in 2025, and 64% planning to increase capital expenditure over the next 12 months. Faster payments and settlement drew 60%, while collateral and liquidity management drew 41%.
Background
Lloyds has tested the technology directly. Earlier this year it worked with Archax and Canton Network on a deal it described as the UK's first public blockchain transaction in which tokenized deposits paid for a tokenized government bond. A separate UK Finance test involving three banks, including HSBC, simulated an online marketplace purchase. The US and UK treasuries recommended creating a private-sector group to test cross-border uses of tokenized assets.
Questions readers ask
What did the Lloyds tokenization survey find?
It found that 71% of UK financial institutions expect tokenization to reshape financial services. Faster payments and settlement was the top benefit at 60%, followed by better collateral and liquidity management at 41%.
How many people did the Lloyds survey question?
The tenth annual Financial Institutions Sentiment Survey questioned 100 senior decision-makers at major UK banks, insurers, financial sponsors, and asset and wealth managers.
What have UK banks tested with tokenized deposits?
UK Finance's interbank tests included two remortgage transactions involving Lloyds, NatWest and Barclays. A separate test involving three banks, including HSBC, simulated an online marketplace purchase.
When could the UK see tokenized government bonds?
A government-backed task force called for the country's first tokenized government bond by early 2027. Participating banks also plan three digital bond issues in the first quarter of 2027 that can settle using tokenized deposits.
