A significant step has been taken in the UK financial sector to shape the next generation of digital currency and payment systems. Quant has been selected to develop payment infrastructure and banking technology for the "Tokenized Sterling Deposit" (GBTD) pilot project, alongside leading banks in the country. The project is being led by UK Finance and includes participation from major banks such as Lloyds, Barclays, HSBC, NatWest, Santander, and Nationwide.
Quant CEO Gilbert Verdian expressed his delight at participating in this project in a statement on social media. Verdian stated that Quant's technology, previously successfully tested in the UK's Regulated Liability Network (RLN) project, was chosen because of its ability to connect diverse payment systems and implement a "programmable money" model. According to Verdian, this project will not only speed up payments but also fundamentally transform how money is moved and managed.
GBTD refers to tokenized digital versions of traditional sterling deposits. In other words, users' bank deposits will be protected by regulations and existing security mechanisms, while gaining a blockchain-based structure. This enables faster and more secure transactions against fraud.
Three main use cases will be tested in the pilot phase: interpersonal payments on online marketplaces, remortgaging processes, and the direct exchange of digital assets with customer deposits. For example, tokenized deposits in marketplace transactions will increase trust between buyers and sellers and reduce the risk of fraud. In mortgage and remortgage processes, transparency will be ensured, transactions will be accelerated, and conveyancing fraud, in particular, will be prevented. Furthermore, integrating tokenized deposits with digital assets will allow for a more seamless bridge between the crypto and traditional financial worlds.
The project will continue until mid-2026. During this period, the aim is to concretely demonstrate the benefits to customers, businesses, and the wider economy. Users are promised greater control, stronger fraud prevention measures, and efficient reconciliation processes. The project also aims to reinforce the UK's leading role in global financial innovation, aligning with the UK's "National Payments Vision" plan and the digital bond (DIGIT) initiative.
UK Finance Director Jana Mackintosh described the initiative as "a powerful example of industry collaboration," while Bank of England Governor Andrew Bailey emphasized that tokenized deposits offer a more secure and regulated alternative to stablecoins. Executives from Barclays, HSBC, Lloyds, NatWest, Nationwide, and Santander also emphasized that tokenized deposits will play a central role in the future of digital payments infrastructure.
QNT Price Moves
The price of Quant (QNT) briefly surged on September 26th, rising above $92 following news that the UK would be responsible for the payments infrastructure in the tokenized sterling deposit (GBTD) pilot. However, this momentum was short-lived, and the price fell back to $88.65, a 2.3% decline on the day.
