71% of UK Finance Leaders See Tokenization Reshaping Financial Services

UK financial leaders back tokenization rollout

A survey by Lloyds Banking Group found that 71% of UK finance leaders expect tokenization to reshape financial services. The finding comes from an annual survey that polled 100 senior decision-makers across major UK banks, insurers, asset managers, and financial sponsors.

Tokenization is the process of converting real-world assets, like bonds or deposits, into digital tokens on a blockchain network. Blockchain is a shared digital record-keeping system used to track transactions across multiple computers.

The survey highlights growing institutional interest in moving assets and payments onto digital infrastructure, as UK policymakers push to move tokenization beyond pilot projects and into mainstream financial infrastructure.

Key findings from the survey

• 71% of UK finance leaders expect tokenization to reshape financial services
• 60% cited faster payments and settlement as the most significant benefit
• 41% pointed to improved collateral and liquidity management
• Lloyds tested tokenized deposits with Archax and Canton Network on the UK's first public blockchain transaction to purchase a tokenized UK government bond

What Lloyds says about the technology

Lloyds Banking Group has tested tokenization 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.

Rob Hale, co-head of global markets at Lloyds, said: "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."

Lloyds noted that moving assets and payments onto digital infrastructure could free up capital and liquidity tied up in financial transactions, allowing institutions to deploy those resources elsewhere.

UK government targets and economic projections

In May, the Bank of England proposed extending its core settlement infrastructure toward near-24/7 availability. A subsequent government payments blueprint called for tokenized and traditional forms of money to operate within an interoperable payments system.

In July, a government-backed industry task force estimated 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. The task force also called for the country's first tokenized government bond by early 2027.

The UK and US have also sought greater coordination. In July, both treasuries recommended creating a private-sector group to test cross-border uses of tokenized assets and urged their respective regulators to identify shared approaches to oversight.

What is confirmed

The 71% figure comes directly from Lloyds Banking Group's annual survey of 100 senior decision-makers. The 60% and 41% benefit figures are also from this survey. Lloyds confirmed its blockchain transaction with Archax and Canton Network. The economic projections and policy recommendations are from official UK government and Bank of England sources cited in the article.

What is still unclear

The article does not provide details on which specific institutions participated in the survey beyond the broad categories of banks, insurers, asset managers, and financial sponsors. The timeline for wider industry adoption of tokenization beyond pilot projects remains open.

Why this matters for crypto investors

Tokenization represents a bridge between traditional finance and blockchain technology. When large financial institutions move assets onto digital infrastructure, it could increase demand for blockchain-based settlement systems and digital asset services. The UK's push toward near-24/7 settlement infrastructure and cross-border tokenized asset testing signals growing institutional readiness for blockchain-based finance.