Aberdeen & Lloyds Pioneer Tokenized Collateral for FX Trades on Hedera Blockchain

Lloyds Banking Group and Aberdeen Investments have executed the UK's first foreign exchange trades using tokenized money market fund units and gilts as collateral. Archax, an FCA-regulated digital asset exchange, facilitated the transactions on Hedera Hashgraph's blockchain infrastructure.

The initiative demonstrates how programmable digital assets can streamline margin processes in the $5.4 trillion daily FX derivatives market. Automated compliance features reduce operational friction while enhancing collateral efficiency—a potential game-changer for institutional trading desks.

Market observers note this collaboration positions London as a frontrunner in real-world asset tokenization. The technology could mitigate systemic risk during volatility by enabling digital collateral transfers instead of forced liquidations.