By Phoebe Sores London, September 26 (Reuters) – Britain’s biggest lender shooters are pushing with plans to launch versions of customer deposits next year, a move that follows the Governor of Bank or England, Andrew Bailey to prioritize the technology above stableecoins. Tokenation usually refers to the creation of digital representations of assets such as deposits, stocks and bonds stored on a blockchain. Proponents say they can transport faster, cheaper and safer. Banks, including HSBC, Natwest and Lloyds, have launched a pilot using signed deposits for payments via online market places, UK Finance operations group said on Friday. Bailey skeptical about stableoins comes the pilot after Bailey said in July that he was “not against stableecoins”, he could not understand their need and that he believes that the tokenation offers more value. Stableecoins, a kind of cryptocurrency linked to a fiat currency has thrown into popularity. US President Donald Trump’s genius law has brought more regulatory clarity and has asked several US banks to say that they can enter a market dominated by non-bankers. On Thursday, a group of European lenders also announced plans to start a euro-denominated stableecoin. Bailey has warned that stable cecins get money from the banking system and threaten financial stability. In an interview with the Times newspaper in July, he warned banks to issue their own stableecoins. Although the UK’s financial behavioral authority is not expected to finalize stableecoin regulation until the end of 2026, the BOE said banks could experiment with shown deposits within the existing regulation, a senior British banking officer said the deposits shown did not have the ‘brand image of a stableecoin, but that it was an important technological upgrade. Many large lenders both investigate. Citi CEO said in July that signed deposits are probably more important than a stableecoin. Britain’s showed deposit pilot, who is also involved in Barclays, Nationwide and Santander, will last until mid-2026. The pilot will also test applications in the Reformed process and digital asset array. Jana Mackintosh, managing director for payments and innovation at UK Finance, told Reuters that tokenation enables technological change while keeping payments in the regulated banking system. (Editing by Tommy Reggiori Wilkes and Mark Potter)
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