Lloyds Bank completes the UK's first tokenized deposit purchase of Bonded Debt transaction

2026-01-07 10:55:38

Deep Tide TechFlow News, January 7th, according to CoinDesk, Lloyds Banking Group, the third-largest bank in the UK, announced the completion of the UK’s first transaction using tokenized deposits to purchase government bonds(Gilt Bonds). The transaction was completed in collaboration with crypto trading platform Archax and privacy-focused Canton Network, demonstrating the application of blockchain technology in traditional finance.

The process involved Lloyds Bank issuing tokenized deposits on Canton Network, then Lloyds Bank’s corporate markets division using these deposits to purchase Archax’s tokenized Gilt Bonds, and finally, Archax transferring the funds back to its regular Lloyds account.

Surath Sengupta, Head of Transaction Banking Products at Lloyds Bank, stated that tokenized deposits offer advantages such as instant settlement, automatic protocols, and increased transparency, while still earning interest and remaining within the scope of the Financial Services Compensation Scheme deposit protection.

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