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Lloyds Banking Group says tokenization could make buying a home faster and simpler for millions of UK customers. The bank argues that smart contracts and tokenized money on secure ledgers can connect steps that are now slow and paper-heavy, from conveyancing to payments. Executives see this shift as a way to cut waiting times, reduce errors, and keep strong controls while moving data and funds in real time.
A detailed roundup by PYMNTS report interview with CEO Charlie Nunn, who compared the coming change to the first time people used smartphones—more intuitive, more connected, and easier to navigate. He said tokenized deposits and smart contracts could guide each step with less friction, while lenders keep standard checks and compliance.
Lloyds also showed that tokenized money can work in live markets. In January 2026, the bank and Archax completed the UK’s first purchase of a gilt using tokenized deposits issued on the Canton network. Archax and Lloyds detail transaction, calling it a step toward instant settlement and better liquidity, with on-chain cash moving back into a regular Lloyds account after the trade.
The homebuying angle is not new for Lloyds. In 2024, the group announce investment in Coadjute, a UK platform that links estate agents, conveyancers, brokers, and banks over a shared ledger (Lloyds Banking Group). The goal is simple: let trusted parties share documents and status updates securely so chains do not stall, a common pain point for buyers and sellers.
If these pieces come together, the process could look very different. A buyer’s funds might sit as tokenized deposits, released by a smart contract when legal steps finish. Title checks, mortgage offers, and completion statements could sync automatically. Banks and law firms would still manage risk and KYC, but the data would move with less re-keying and fewer gaps between systems.
The benefits for real estate tokenization are clear. When the payments leg, the legal leg, and the asset leg talk to each other, fractional property deals and standard home purchases can share the same rails. That could help investors receive distributions on time, while homebuyers see fewer delays caused by missing forms or mismatched records.
“This transaction offers a glimpse into the future of finance; faster, smarter, and more efficient,” said Surath Sengupta, Head of Transaction Banking Products at Lloyds, after the Archax pilot. He added that tokenized deposits keep the protections of traditional cash while enabling instant settlement on modern rails—exactly the kind of bridge that complex property deals need.
