In an effort to improve banking payments tracking, several British banks, including Barclays and Citigroup, have joined forces to pilot tokenized deposits. This initiative, known as the "UK Regulated Liability Network," aims to simplify cross-border transactions using a shared ledger system. The project, announced by the British trade association UK Finance, is set to explore new payments features and reduce fragmentation in retail payment markets.

Barclays' chief technology officer, Lee Braine, expressed hopes that the experiments will offer valuable insights into enhancing customer experiences and minimizing risks in payment systems. The trial involves various stakeholders, including banks, payment systems like Mastercard, and firms like Quant, with an expected duration of two to three years before commercial implementation.

The pilot, slated to run until summer 2024, will focus on evaluating customer and business benefits, technical feasibility, and legal considerations for operating a shared ledger settlement system. While the specifics of the shared ledger technology remain undisclosed, efforts are underway to integrate tokenization services with existing products, as evidenced by Hong Kong's GF Securities launching a tokenized commercial paper on the Ethereum blockchain.

In summary, British banks are collaborating on a tokenized deposits trial to enhance banking payments tracking and streamline cross-border transactions. The project, involving various stakeholders, aims to assess benefits and feasibility before potential commercial implementation. Meanwhile, other entities are exploring the integration of tokenization services with existing products to advance the digital asset ecosystem.