Lloyds survey finds 71% expect tokenization to reshape finance

A Lloyds Banking Group survey found that 71% of senior decisionmakers at major UK financial institutions expect tokenization to reshape financial services, with faster payments and settlement the most frequently cited potential benefit. The annual survey covered 100 executives from banks, insurers, asset managers and financial sponsors, Lloyds said. Sixty percent of respondents identified faster payments and settlement as a potential benefit, while 41% cited improved collateral and liquidity management. The results record executives’ expectations, not measured effects. Lloyds said digital representations of assets such as cash, bonds and funds could help speed transactions and release capital tied up during settlement. Lloyds has also reported tests involving tokenized assets and payments. In a transaction with Archax and Canton Network, the bank said it used tokenized deposits to purchase a tokenized UK government bond, describing it as the UK’s first public-blockchain transaction of that kind. That first-of-its-kind characterization is Lloyds’ claim.