Nearly three-quarters of senior decision-makers at major UK financial institutions believe tokenization could significantly change financial services, according to an annual survey by Lloyds Banking Group reported by Cointelegraph.
The survey found that faster payments and settlement were viewed as the leading potential advantages of moving assets and money onto blockchain-based infrastructure. The results come as the UK works to develop common systems that could connect tokenized financial assets with existing markets.
Faster settlement seen as leading benefit
Lloyds surveyed 100 senior executives from major UK banks, insurers, asset managers and financial sponsors. Some 71% said they expected tokenization to reshape financial services.
The most frequently cited benefit was faster payments and settlement, identified by 60% of respondents. Another 41% highlighted improvements to collateral and liquidity management.
Tokenization generally involves representing assets or financial instruments digitally on a blockchain or similar technology. In financial markets, the approach is being explored for payments, settlement, liquidity management and assets such as government bonds.
Lloyds said that transferring assets and payments to digital infrastructure could reduce the capital and liquidity held up during financial transactions. Those resources could then become available for other uses within financial institutions.
“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,” Rob Hale, co-head of global markets at Lloyds, said.
The bank has also carried out a practical test. Earlier in 2026, Lloyds worked with Archax and Canton Network on what it described as the UK’s first public blockchain transaction involving tokenized deposits used to purchase a tokenized UK government bond.
UK pushes tokenization beyond pilots
The survey arrives as UK policymakers seek to move tokenized finance from isolated trials into broader financial infrastructure. In May, the Bank of England proposed extending its core settlement infrastructure toward near-24/7 availability.
A later government payments blueprint called for tokenized and traditional forms of money to function within an interoperable payments system. In July, a government-backed industry task force estimated that UK leadership in tokenized finance could contribute as much as £33 billion ($44 billion) to annual economic output by 2035. The task force also called for the country’s first tokenized government bond by early 2027.
The UK has also been discussing coordination with the United States. In July, the two countries’ treasuries recommended forming a private-sector group to test cross-border applications for tokenized assets. They also urged US financial regulators and the Bank of England to explore shared regulatory approaches.
Moneyiar market picture
Moneyiar data at 09:14 on October 3, 2026, showed mixed performance among selected digital assets:
- Aster (ASTER): $0.7087574427, down 5.9% over 24 hours and 2.95% over seven days.
- ApeCoin (APE): $0.1623365743, up 4.07% over 24 hours and 4.82% over seven days.
- Astar (ASTR): $0.0073339317, down 1.95% over 24 hours and 2.61% over seven days.
These market movements are separate from the Lloyds survey’s findings about institutional expectations for tokenized financial infrastructure.
