Lloyds Banking Group completes UK’s first gilt purchase using tokenized deposits

Lloyds Banking Group, with assistance from Archax and the Canton Network, completed the first purchase of a U.K. gilt (government bond) using tokenized deposits—blockchain representations of fiat currency bank deposits. This transaction involved Lloyds Bank plc issuing tokenized deposits on the Canton Network, which were then used by Lloyds Bank Corporate Markets to buy a tokenized gilt from Archax. The purchase demonstrates how tokenization can digitize real-world assets for instant transfer, offering faster, more efficient finance. Surath Sengupta of Lloyds noted that tokenized deposits retain benefits like interest earnings and deposit protection while adding advantages like instant settlement and improved transparency.

(Source：CoinDesk)