Lloyds Banking Group has published a survey showing that tokenisation could reshape financial services as institutions increase investment on on-chain infrastructure and digital assets.
71% of senior decision-makers at the UK’s largest financial institutions expect tokenisation to reshape the future of financial services, according to Lloyds’ annual Financial Institutions Sentiment Survey. The survey covered 100 senior executives across
banks,
insurers,
financial sponsors, and
asset and wealth managers.
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Tokenisation allows assets such as cash, bonds, and funds to be represented digitally on-chain potentially enabling faster settlement, automated transactions, and more efficient management of collateral and liquidity.
Faster payments and settlement were identified as the biggest potential benefit cited by 60% of respondents, followed by
collateral and liquidity management at 41%.
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Lloyds said these efficiencies could release capital and liquidity currently tied up in financial transactions for other uses.
Investment in emerging technology is also accelerating.
77% of institutions surveyed said such investment is now a growth priority, up from 41% in 2025, while
64% expect to increase capital expenditure over the next 12 months.
Lloyds said modernising financial and market infrastructure was also viewed by respondents as one of the UK’s biggest economic opportunities over the coming year.
“Financial institutions have spent years modernising how customers interact with financial services.
Increasingly, attention is turning to the infrastructure behind those experiences. Tokenisation is a key part of that shift, with organisations exploring how it can help them transact in a safe, trusted environment, improve efficiency, make better use of capital and enable new products and services.
Those that can turn that potential into real-world solutions stand to gain the greatest advantage,” said Lisa Francis, Global Head of CIB Coverage at Lloyds.
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The bank has been testing tokenisation in live financial markets. In early 2026, Lloyds completed the UK’s first public-blockchain transaction using tokenised deposits to purchase a tokenised gilt working with Archax and the Canton Network.
The findings come as Lloyds expands its work on tokenised deposits and digital securities including 3 live tokenised deposit transactions under Project Agorá covering sterling, euros and Swiss francs, including a cross-currency transaction linking FX conversion, payment, and settlement in a single flow.
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“The real opportunity is to make financial markets work faster, more efficiently and with greater flexibility for clients.
Faster settlement, more efficient use of collateral and better movement of liquidity are tangible benefits that boost balance sheets.
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,” said Rob Hale, Co-Head of Global Markets at Lloyds.
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