Lloyds and Aberdeen Pioneer Tokenized FX Collateral in UK Blockchain Pilot

Lloyds Banking Group and Aberdeen Investments have executed the UK's first foreign exchange trades using tokenized real-world assets as collateral. The blockchain-based pilot, conducted with digital securities platform Archax, marks a significant step in institutional adoption of distributed ledger technology.

The transactions Leveraged digital tokens representing Aberdeen's money market fund and UK government bonds, issued and settled on the Hedera Hashgraph network. "This demonstrates digital assets can function within existing UK regulatory frameworks," said Lloyds' digital finance head Peter Left, highlighting the potential for reduced operational friction in collateral management.

The initiative reflects growing momentum for asset tokenization among traditional financial institutions. Similar projects by J.P. Morgan, BlackRock, and Barclays underscore the industry's push to modernize financial infrastructure through blockchain solutions.