Overview
- Lloyds Bank plc issued tokenized sterling deposits on the Canton Network, then Lloyds Bank Corporate Markets used them to purchase a tokenized gilt from Archax.
- Archax transferred the underlying fiat back into its standard Lloyds account, demonstrating interoperability between blockchain settlement and existing banking infrastructure.
- Lloyds and Archax describe the deal as the first UK transaction using tokenized deposits on a public blockchain and a global debut for sterling in this form.
- Lloyds says the tokenized deposits continue to accrue interest and remain covered by the Financial Services Compensation Scheme, preserving core deposit features.
- The proof‑of‑concept highlighted instant settlement, automation and transparency as potential benefits, with Lloyds also operating a validator node on Canton during the trial.