Barclays, HSBC, and Santander are testing similar blockchain systems in a UK Finance pilot program.
One of Britain’s largest banks, Lloyd, is working with multiple technology companies to eliminate physical paperwork from its processes in favor of blockchain systems and artificial intelligence across its business, from global trade deals to secured consumer lending.
The initiative aims to speed up transactions and cut costs in various areas of the business. Changes are underway in how the institution handles trade documentation.
The move towards digital record-keeping picked up steam in 2023 through a partnership with Enigio. The collaboration allows the bank to handle shipping papers, bills of exchange, and promissory notes through blockchain without printing or posting physical documents.
This builds on work from 2022, when Lloyds processed Britain’s first digital promissory note, with a digital bill of exchange twelve months later.
The bank broadened its digital footprint in 2024 by linking up with WaveBL, a blockchain system operating in 136 countries. Customers can now move electronic bills of lading worldwide, eliminating courier fees and the waiting times that come with paper systems.
The bank recently finished a digital Letter of Credit transaction connecting India and the United Kingdom. Where traditional paper approaches typically require several weeks, this digital method wrapped up in just four days. The faster processing supports a trade agreement between both countries targeting $120 billion in commerce by 2030.
Plans for 2027 include introducing tokenized deposits. Through “smart contracts,” the bank wants to automate legal steps like conveyancing and document handling.
This work forms part of a broader trial run by UK Finance involving other big names, including Barclays, HSBC, and Santander. The consortium is examining how tokenized money works for online purchases, remortgaging homes, and completing wholesale bond settlements. Designers believe these arrangements will reduce the risk of fraud and enable “programmable money,” where payments happen automatically when specific conditions are satisfied.
Quant Network manages the infrastructure for this framework, which should be operational by 2026. Lloyds expects this setup will eventually connect with central bank digital currencies and private assets, positioning the UK as a leader in international digital finance.
The institution is also making substantial investments in artificial intelligence. The bank now runs a cloud-based system handling 18 generative AI applications and more than 80 machine learning programs. Officials predict these AI tools will deliver £50 million in value this year, climbing to £150 million the following year.
AI is already producing financial results. Since 2021, the bank reports cutting £1.5 billion in costs through automation. The bank plans to launch a new AI financial assistant by 2026.
A recent survey revealed that 54% of UK financial companies believe AI will offer a competitive edge. Lloyds has already put over 800 AI models to work across 200 different internal operations. These initiatives helped the bank secure an “Outstanding” rating in the 2025 Euromoney Global Digital Banking report.
Currently, the bank counts 23 million customers using digital platforms, with 21 million on its mobile app.
Competing banks are also spending on technology. Barclays, for instance, has concentrated on an AI assistant for employees, and Santander is applying data to forecast when customers might have trouble with loan repayments. Meanwhile, Lloyds is pursuing comparable AI projects while simultaneously advancing blockchain into trade and deposits.
Through digitizing these operations, the bank is tackling persistent problems with high costs, sluggish processing times, and the environmental burden of paper-intensive banking. As the UK shifts its financial approach towards digital assets, Lloyds is wagering on this combination of AI and blockchain.
If you’re reading this, you’re already ahead. Stay there with our newsletter.
