Lloyds executes UK first for tokenised deposits

Working with Archax and the Canton Network, the bank purchased a tokenised gilt using the on-chain deposits.

“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.

“Tokenisation allows us to bring real-world assets onto blockchain infrastructure, creating opportunities for businesses to transact with greater speed, transparency, and flexibility.”

The transaction involved Lloyds issuing tokenised deposits on the Canton Network, a public blockchain designed for regulated financial markets.

Lloyds Bank Corporate Markets, part of Lloyds Banking Group, used the deposits to acquire the tokenised gilt from Archax.

The underlying cash was then transferred back into Archax’s conventional Lloyds account, illustrating how funds can move between blockchain-based infrastructure and the traditional banking system, according to Archax.

“This transaction shows how tokenised real-world assets can deliver real-world benefits for institutions,” said Graham Rodford, chief executive officer and co-founder of Archax.

Lloyds also operated its own validator node on the Canton Network, verifying transactions and managing customer funds in line with the bank’s existing security and control standards.