The United Kingdom is officially testing the waters of tokenized money. On Friday, UK Finance, the powerful trade association representing more than 300 financial services firms, announced the launch of its tokenized sterling deposits (GBTD) pilot, marking a major step in the digital transformation of banking.

The project — which will run until mid-2026 — is designed to create a digital representation of the British pound issued by commercial banks, potentially revolutionizing how money moves across the financial system.

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Six of the UK’s biggest banks are participating: Barclays, HSBC, Lloyds Banking Group, NatWest, Nationwide and Santander. Together, these institutions represent the backbone of Britain’s financial landscape.

Why tokenized deposits matter

Tokenized deposits are not cryptocurrencies or stablecoins. Instead, they are blockchain-based digital versions of existing pounds held in commercial banks. Unlike volatile crypto assets, tokenized deposits are fully backed by fiat currency, making them stable and familiar to regulators.

UK Finance believes the initiative could bring multiple benefits:

• Faster payments across online marketplaces
• Fraud prevention through programmable transactions
• Efficiency in wholesale bond settlement and remortgaging

By digitizing bank money, the pilot could improve security and create new possibilities for programmable finance, a step closer to the concept of “smart money.”

Quant Network behind the tech

The infrastructure for the project will be delivered by Quant Network, a UK-based blockchain interoperability firm led by founder and CEO Gilbert Verdian.

“Our involvement underscores Quant’s leadership in digital finance,” Verdian said. “This project isn’t just about faster payments — it’s about enabling programmable money that can fundamentally transform how value is moved and managed.”

Quant previously helped deliver the Regulated Liability Network (RLN), another UK-led shared ledger initiative launched in 2024, which brought together global giants like Citi, Mastercard, Visa, and Standard Chartered.

UK catching up on regulation

The tokenized deposits pilot comes as the Financial Conduct Authority (FCA) prepares to roll out a comprehensive crypto regulatory framework by 2026. Earlier this year, the UK Treasury issued a policy note clarifying that tokenized deposits and stablecoins would be regulated differently from traditional e-money.

Meanwhile, the European Union has already implemented the Markets in Crypto-Assets (MiCA) regulation, which broadly governs tokenization but excludes deposits tied to traditional banking. That leaves the UK’s approach under the spotlight as it looks to position itself as a hub for digital finance.

Three key use cases

According to UK Finance, the pilot will focus on three main areas:

1. Online marketplace payments – faster, fraud-resistant transactions.
2. Remortgaging processes – streamlining paperwork and settlement.
3. Wholesale bond settlement – reducing friction in financial markets.

If successful, these use cases could provide a roadmap for wider adoption of tokenized deposits, reshaping the daily interactions of consumers, banks, and businesses.

The bigger picture

The push for tokenized deposits underscores a global race among governments and banks to modernize money. While central bank digital currencies (CBDCs) like the proposed Digital Pound are still under discussion, private-sector pilots like this could accelerate innovation without waiting for government rollout.

For now, the UK’s experiment with tokenized sterling deposits will be closely watched. As Gilbert Verdian put it: “We are building the infrastructure powering tomorrow’s economy.”

The crypto industry is once again in the crosshairs of North Korean cybercriminals — but this time, experts warn the threat may come not from distant malware campaigns, but from inside company walls.

According to cybersecurity specialists, North Korean agents are seeking jobs at major Web3 firms under fake identities, aiming to gain insider access that could lead to large-scale exploits. The risk is more than hypothetical. Earlier this year, the Coinbase data breach exposed sensitive information about nearly 1% of users, including wallet balances and even physical locations, costing the exchange an estimated $400 million in potential reimbursements.

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How North Korea infiltrates crypto

Fake resumes, aliases, and forged documents are now tools of choice for operatives seeking to embed themselves within blockchain companies. Once inside, these workers can extract sensitive data, siphon funds, or pave the way for future hacks.

“Organizations need to treat the DPRK IT worker risk seriously,” said Yehor Rudytsia, head of forensics and incident response at blockchain security firm Hacken. He stressed the need for thorough background checks and strict role-based access controls.

Rudytsia also pointed to industry standards like CCSS (Cryptocurrency Security Standard) for wallet operations, urging companies to adopt dual wallet control, where multiple signatories are required for a transaction, reducing the risk of a rogue insider.

AI as the new frontline

Beyond wallet management, experts argue artificial intelligence must be integrated into crypto security systems. Deddy Lavid, CEO of blockchain cybersecurity firm Cyvers, told Cointelegraph that “real-time, AI-driven monitoring is how to stop the next breach.”

Lavid emphasized that AI-powered anomaly detection, linking both on-chain and off-chain data, could alert firms before an insider exploit escalates. “The Coinbase breach was a warning,” he added. “Proactive AI monitoring can prevent the next one.”

Alarming discoveries

The urgency of these warnings was underscored by revelations from Security Alliance (SEAL), an ethical hacker collective that uncovered at least 60 North Korean agents posing as IT professionals. The repository of data published by SEAL included fake resumes, forged citizenships, email addresses, and even records of firms that had unknowingly hired these operatives.

Just last June, four North Korean infiltrators were confirmed to have landed freelance roles at multiple crypto companies, raising fears of more sophisticated, long-term campaigns.

Binance founder raised alarm

The growing infiltration threat has also caught the attention of industry leaders. Changpeng Zhao, co-founder of Binance, publicly warned about the risks of hiring unknown developers without rigorous checks, noting how bribes and fake credentials are being used to slip through recruitment processes.

A global cybercrime problem

While not every North Korean developer is a hacker, experts highlight that wages paid to such workers often end up funding the state, which has become one of the world’s most notorious cybercrime actors. According to the United Nations, North Korea has stolen billions of dollars in cryptocurrency over the past decade to fund its weapons program.

What companies must do next

The solution, according to experts, is multilayered:

• Dual wallet management with multisignature safeguards.
• Enhanced employee vetting with identity verification and background checks.
• Real-time AI monitoring to detect unusual activity before it escalates.
• Regular audits of cloud setups, logs, and wallet operations.

As Rudytsia put it: “The key is simple: keep verifying, keep monitoring, and don’t rely on trust alone.”

With North Korea’s cyber armies growing more sophisticated, the message to crypto companies is clear: insider threats may be the next frontier, and ignoring them could be far costlier than preparing for them.

Hester Peirce, widely known in the digital asset community as “Crypto Mom,” offered a blend of humor and hard truths during her recent remarks at a Coin Center event. With her official term at the U.S. Securities and Exchange Commission expiring in June, speculation has swirled about her next career move.

Addressing the audience, Peirce dismissed the idea of pivoting to the private crypto sector like many former regulators, saying:

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I could leave the government and do a 180 on crypto, but that career path is too well-trodden for me.

Instead, she joked about turning to beekeeping — “honey is delicious and nutritious, and bees sting with less glee than most of my Twitter commenters” — before delivering her punchline:

For post-SEC life, therefore, I must turn to Plan C, or more precisely, Plan NFT.

Peirce said her tongue-in-cheek NFT collection would feature caricatures of the many characters she has encountered in the crypto ecosystem, from CEOs and influencers to regulators and skeptics.

A serious message behind the humor

While her NFT remarks drew laughs, Peirce quickly turned serious. She acknowledged that much of her tenure had been a struggle to convince colleagues to give the crypto industry a fair chance.

“I am sorry that over most of my tenure at the SEC I failed to convince my colleagues in government to give you a chance,” Peirce admitted. “I hope that you and others whom you have inspired will use this time… to build good things that will enhance the safety, security, happiness, and prosperity of your family, friends, neighbors, and nation.”

SEC’s shifting crypto stance

Her comments come at a time when the SEC’s tone on digital assets appears to be softening. Since the January departure of former SEC Chair Gary Gensler — often criticized for pursuing “regulation by enforcement” — the agency has scaled back some long-standing lawsuits against crypto companies.

Analysts suggest this shift could pave the way for long-awaited approvals of cryptocurrency exchange-traded funds (ETFs), a development that might legitimize the industry in the eyes of traditional investors.

A market structure bill moving through the U.S. Senate is also expected to clarify the roles of financial regulators, potentially giving the SEC more defined responsibilities in overseeing digital assets.

Why Peirce matters to crypto

As one of the most vocal advocates for blockchain innovation within the SEC, Peirce has earned respect in the crypto community. Her balanced approach — skeptical but supportive of experimentation — has set her apart from more hardline regulators.

By floating lighthearted NFT ideas while stressing the importance of regulatory clarity, she struck a chord with both policymakers and innovators.

For the industry, Peirce’s eventual departure will mark the end of an era. But her parting words were a reminder that she sees the current moment as a critical opportunity:

Regulatory clarity has replaced ambiguity as government’s objective — now it’s up to you to build responsibly.

Whether or not she ever mints her “Crypto Mom” NFTs, Peirce’s legacy will be remembered as one of the few regulators who tried to bridge Washington with Web3.