Lloyds and Aberdeen completes UK's first FX trade using tokenized UK gilts and money market funds
The post Lloyds and Aberdeen completes UK's first FX trade using tokenized UK gilts and money market funds appeared on BitcoinEthereumNews.com. Lloyds Banking Group and Aberdeen Investments have executed the United Kingdom’s first foreign exchange (FX) trade collateralized using tokenized assets, including UK gilts and money market fund units. The transaction was facilitated through a partnership with Archax, a Financial Conduct Authority (FCA)-regulated digital asset exchange, and carried out on the Hedera Hashgraph blockchain. The initiative marks the first time that tokenized real-world assets (RWAs) have been used as collateral in a regulated FX trade within the UK. “This groundbreaking initiative proves digital assets can be used in regulated financial markets under existing legal frameworks here in the UK,” said Peter Left, head of digital finance at Lloyds. “It’s a major step forward in demonstrating how tokenisation can enhance collateral efficiency, reduce friction, and unlock new trading opportunities.” The UK crosses a milestone in tokenized collateral This project is part of a broader move by the UK government and private institutions to explore tokenization in financial services. In March, the Chancellor of the Exchequer invited market participants to help shape the UK’s framework for digital gilt instruments — a consultation that has laid the groundwork for regulated innovation such as this pilot. The significance of this first use case is underlined by the scale of the market it touches. The UK accounts for nearly half of all global activity in FX and interest rate derivatives, trading an estimated $5.4 trillion daily. Applying blockchain to even a fraction of this activity could reduce systemic risk and introduce greater transparency, speed, and efficiency. The fact that Archax is fully FCA-regulated ensures compliance, while Lloyds and Aberdeen bring institutional scale and credibility to the experiment. Notably, the initiative was executed within the UK’s current legal framework, a point both Lloyds and Archax emphasized. The ability to carry out these operations without requiring legislative changes…
The post Lloyds and Aberdeen completes UK's first FX trade using tokenized UK gilts and money market funds appeared on BitcoinEthereumNews.com.
Lloyds Banking Group and Aberdeen Investments have executed the United Kingdom’s first foreign exchange (FX) trade collateralized using tokenized assets, including UK gilts and money market fund units. The transaction was facilitated through a partnership with Archax, a Financial Conduct Authority (FCA)-regulated digital asset exchange, and carried out on the Hedera Hashgraph blockchain. The initiative marks the first time that tokenized real-world assets (RWAs) have been used as collateral in a regulated FX trade within the UK. “This groundbreaking initiative proves digital assets can be used in regulated financial markets under existing legal frameworks here in the UK,” said Peter Left, head of digital finance at Lloyds. “It’s a major step forward in demonstrating how tokenisation can enhance collateral efficiency, reduce friction, and unlock new trading opportunities.” The UK crosses a milestone in tokenized collateral This project is part of a broader move by the UK government and private institutions to explore tokenization in financial services. In March, the Chancellor of the Exchequer invited market participants to help shape the UK’s framework for digital gilt instruments — a consultation that has laid the groundwork for regulated innovation such as this pilot. The significance of this first use case is underlined by the scale of the market it touches. The UK accounts for nearly half of all global activity in FX and interest rate derivatives, trading an estimated $5.4 trillion daily. Applying blockchain to even a fraction of this activity could reduce systemic risk and introduce greater transparency, speed, and efficiency. The fact that Archax is fully FCA-regulated ensures compliance, while Lloyds and Aberdeen bring institutional scale and credibility to the experiment. Notably, the initiative was executed within the UK’s current legal framework, a point both Lloyds and Archax emphasized. The ability to carry out these operations without requiring legislative changes…
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