Tokenization is expected to reshape financial services by 71% of senior leaders at major UK financial institutions, according to Lloyds' 10th annual Financial Institutions Sentiment Survey. The poll of 100 decision-makers found 60% viewed faster payments and settlement as the technology's biggest opportunity, while 41% cited improved collateral and liquidity management. Lloyds said digital infrastructure can reduce the time and resources required to move money and assets, releasing capital held during settlement. UK banks have expanded practical tests, including tokenized-deposit mortgage transactions and a Lloyds pilot that settled $750,000 of payment obligations with Visa using USDC. The UK industry group UK Finance plans governance arrangements and three digital bond issues in the first quarter of 2027, while UK and US authorities have recommended cross-border testing and regulatory coordination for tokenized financial assets.