71% of executives at financial organizations in the United Kingdom believe that tokenization will transform financial services. This is according to the annual survey by Lloyds Banking Group, the country's largest financial institution, conducted among 100 senior managers from banks, insurers, asset managers, and financial sponsors.

Main advantages: Faster payments and settlements

60% of respondents identified faster payments and settlements as the main benefit of tokenization, while 41% pointed to improved liquidity and collateral management. Lloyds notes that moving assets and payments to digital infrastructure could unlock capital and liquidity previously tied up in transactions.

Testing and development of tokenized asset infrastructure

Earlier this year, Lloyds, together with Archax and Canton Network, carried out the first public blockchain transaction in the UK using tokenized deposits to purchase a tokenized government bond.

Government support and economic potential

The survey was published as measures are being taken to integrate tokenization into the country's financial infrastructure. In May, the Bank of England proposed extending its settlement system to operate nearly around the clock, while a government strategy recommends creating an interoperable system for both tokenized and traditional forms of money. In July, a working group estimated the potential economic impact of UK leadership in tokenized finance at £33 billion ($44 billion) by 2035 and called for the issuance of the first tokenized government debt before early 2027.

Collaboration with the United States

In the same month, the US and UK finance ministries recommended forming a private group to test cross-border use cases for tokenized assets and to develop joint regulatory approaches.