Lloyds and Aberdeen Pioneer Tokenized FX Trade on Hedera Hashgraph

Lloyds Banking Group and Aberdeen have executed the UK's first foreign exchange transaction using tokenized UK gilts and money market funds as collateral. The landmark deal, facilitated through FCA-regulated Archax, was settled on the Hedera Hashgraph blockchain—marking a regulatory milestone for real-world asset (RWA) tokenization in British financial markets.

The initiative demonstrates how distributed ledger technology can optimize collateral efficiency in the $5.4 trillion daily FX derivatives market. "This proves digital assets operate within existing UK legal frameworks," said Lloyds' digital finance head Peter Left, highlighting potential reductions in settlement friction and new trading avenues.

The pilot aligns with HM Treasury's March consultation on digital gilts, signaling institutional momentum toward blockchain-based financial infrastructure. As the global FX hub, Britain's embrace of tokenized collateral could set precedents for wholesale market modernization.