Lloyds, NatWest, Barclays, and HSBC used blockchain technology to settle funds between their accounts using digital tokens representing bank deposits. The group of UK lenders used the pilot to modernize the infrastructure used for how financial institutions exchange liquidity.

These transfers mark the first time interbank transactions have been processed globally using tokenized deposits on a blockchain. By converting traditional liabilities into digital tokens, the banks intend to reduce manual reconciliation and speed up the clearing process for high-value payments.