Overview
- Lloyds Bank plc issued tokenised deposits on the Canton Network, which Lloyds Bank Corporate Markets used to buy a tokenised gilt from Archax.
- After settlement, Archax transferred the underlying fiat back into its regular Lloyds account, illustrating funds flow between blockchain and traditional banking systems.
- Lloyds and partners say this is the first UK issuance of tokenised deposits on a public blockchain and the first global use of sterling in this format.
- The bank says tokenised deposits retain deposit features, including the ability to earn interest and protection under the Financial Services Compensation Scheme.
- Lloyds operated a validator node during the pilot, and the firms described the exercise as a proof-of-concept rather than a commercial rollout.