Digital assets in 2026: building the future of finance in the UK

Stablecoins and international payments: 2026 and beyond 

One of the most exciting – and challenging – frontiers is the use of stablecoins for international payments. In 2026, we expect to enable our business clients to send and receive payments in dollar and euro stablecoins, offering a faster, cheaper alternative to traditional correspondent banking. 

This means, for example, that our UK business customers will be able to sell internationally in dollar or euro stablecoins and we would do the conversion for them to GBP or tokenised deposits in the background – a digital version of how old travellers’ cheques used to work.   

The engineering effort behind this development is significant, but the demand is real. Businesses trading internationally are already asking for the ability to settle in stablecoins, especially as regulatory clarity improves in the UK, US and Europe. 

For consumers, the journey will take a little longer. We see B2C stablecoin payments as a 'beyond 2026' ambition, but the groundwork we lay now will make that future possible. 

Digital wallets: the new interface for finance

A key enabler of this new ecosystem is the digital wallet. For our corporate and institutional clients, we are developing wallets that sit alongside traditional transaction banking screens. These wallets will allow clients to hold tokenised deposits, digital assets, and even smart contracts, all in one place. 

Customers will have the transaction bank accounts, and next to that, their wallet. This means that customers can move money between them and hold tokenised assets of any type or currency. 

We’re focused on developing a smooth user experience and, in the longer term, also ensuring an accessible digital wallet offering for our consumer customers. 

Exploring digital capital markets

Our commitment goes beyond payments and wallets. Lloyds Banking Group is actively exploring how we can support the UK’s digital capital markets, including the issuance and management of digital bonds and other tokenised securities. 

We stand ready to help our customers invest in digital assets and to make sure the UK develops a thriving digital capital markets ecosystem. 

This is not just about technology. It’s about building trust, ensuring regulatory compliance, and working with government and industry partners to create a robust, competitive marketplace. 

Regulation: the catalyst for adoption 

2026 will be a pivotal year for digital assets in the UK, thanks in large part to the evolving regulatory landscape. As frameworks like the UK’s new digital asset regulations come into force, alongside established regimes in the US and Europe, businesses will have the confidence to engage with digital assets at scale. 

We’ll have regulation to support customer engagement, allowing them to participate in international trade in jurisdictions where digital assets are already mainstream. 

This regulatory clarity is essential. It will unlock innovation, attract investment, and ensure that the UK remains at the forefront of financial services.

Education and trust 

We recognise that digital assets can seem complex, and even intimidating. That’s why we are committed to demystifying them for our clients, policymakers, and the public - supported by a safe, intuitive, and accessible user experience. 

Our approach is simple: when customers clearly understand both the opportunities and the risks, they can make confident, informed decisions. This builds trust, reduces fear, and ensures the benefits of innovation are shared widely. 

Crucially, customers shouldn’t need to be experts. We bring the expertise - delivered through a user experience that helps customers participate with confidence in a rapidly evolving financial landscape.