Tokenization is expected to reshape financial services by 71% of 100 senior executives surveyed by Lloyds Banking Group. The respondents represented major UK banks, insurers, financial sponsors and asset managers. Faster payments and clearing were identified as the leading benefit by 60%, while 41% cited improved collateral and liquidity management. Lloyds also conducted a demonstration using tokenized deposits to purchase government bonds. The UK government aims to issue its first tokenized government bond by early 2027.