Icon Solutions has released a reference implementation for digital asset payments using its Icon Payments Framework, as UK regulators set out a shared approach to tokenisation and distributed ledger technology in wholesale markets.
The implementation is intended to show how banks can process payments using DLT-based digital assets, including stablecoins, tokenised deposits and central bank digital currencies. According to Icon, the framework works across different digital asset types and ledger networks while connecting to existing core banking and payments systems.
The launch reflects a broader shift in banking as firms move beyond pilot projects and consider how to support digital assets in production systems. A central operational challenge is avoiding separate technology stacks for each new form of digital money or ledger network.
That challenge has grown more prominent as UK policymakers signal stronger support for tokenisation in wholesale financial markets. The Financial Conduct Authority and the Bank of England have outlined a joint vision for tokenised assets and distributed ledger technology, giving banks a clearer regulatory backdrop as they assess investment in new payments infrastructure.
Icon argues that fragmentation is a major risk if adoption scales without common integration into existing banking platforms. Different digital asset models, from stablecoins to tokenised deposits and CBDCs, may run on separate networks, adding complexity for institutions that must also maintain links with established payment rails and internal systems.
Legacy constraints
Icon positioned the reference implementation as an alternative to legacy vendor-led approaches that can limit banks’ flexibility when adapting systems for digital asset settlement and payment processing. It said older architectures can make change programmes slower, more expensive and harder to manage.
According to Icon, its payments development framework has already been used in live environments for DLT-based clearing and settlement. Banks, including Citi, UBS, NatWest and BNP Paribas, have adopted it.
Icon says the framework can reduce implementation times and cut the total cost of ownership for payments transformation projects. The claims come amid a wider push by banks to modernise payments infrastructure in response to changing customer expectations, regulatory pressure and the emergence of new settlement models.
Digital money
Interest in digital assets in banking has moved from experimental projects to more practical questions about operations, governance and interoperability. Stablecoins and tokenised deposits have attracted particular attention because they could support faster settlement and more automated payment processes, while central bank digital currencies remain under examination in many jurisdictions.
For commercial banks, however, integrating these instruments into existing operations remains a significant hurdle. Any deployment must align with current compliance processes, back-office systems and payment networks rather than operate as a stand-alone experiment.
That is where firms such as Icon see an opening. By focusing on reference implementations and integration frameworks rather than a single asset type or ledger, providers are trying to persuade banks they can add digital asset payment support without overhauling all existing infrastructure at once.
Arjeh van Oijen, Head of Product Management at Icon, said the market shift means banks need to rethink how they structure payment systems.
“The move from digital asset experimentation to implementation is a clear market signal that all banks must focus on moving towards a consolidated payments infrastructure that can support any type of payment, anytime, anywhere,” he said.
“As banks start to harness the potential of digital money, IPF is the only solution with the flexibility to bring new services to market quickly, safely and cost-effectively – without relying on external vendors,” he added.
