Lloyds and Archax complete public blockchain transaction
07 January 2026 UK
Image: Creative_Bringer/stock.adobe.com
Lloyds says it has completed the first public blockchain transaction using tokenised deposits in the UK.
The firm says tokenised deposits being issued on a public blockchain is a milestone for digital finance and it is a global debut for sterling deposits.
The transaction involved Lloyds Bank issuing tokenised deposits on the Canton Network, a blockchain designed for regulated financial markets.
Lloyds Bank Corporate Markets, part of Lloyds Banking Group, utilised these deposits to purchase a tokenised gilt from Archax.
Archax then moved the underlying funds back into its regular Lloyds account, demonstrating how transactions can flow between blockchain and traditional banking systems.
The firm says this transaction highlights how tokenisation can bring traditional instruments, such as gilts, into the digital ecosystem.
The UK government is also exploring the possibility of issuing its own digital securities, including launching a pilot Digital Gilt Instrument (DIGIT).
As part of this transaction, Lloyds also ran its own validator node on the Canton Network, which verifies and secures transactions on the network.
Surath Sengupta, head of transaction banking products at Lloyds, remarks: “Tokenisation allows us to bring real-world assets onto blockchain infrastructure, creating opportunities for businesses to transact with greater speed, transparency, and flexibility.
“Crucially, these advantages come without losing the benefits of traditional cash, as tokenised deposits can continue to earn interest and remain protected by the Financial Services Compensation Scheme.”
Graham Rodford, CEO and co-founder at Archax, adds: “This transaction shows how tokenised real-world assets can deliver real-world benefits for institutions.
"Instant settlement and enhanced transparency are game-changers, and we’re proud to work with Lloyds and Canton to lead the way in shaping the next generation of financial markets.”
The firm says tokenised deposits being issued on a public blockchain is a milestone for digital finance and it is a global debut for sterling deposits.
The transaction involved Lloyds Bank issuing tokenised deposits on the Canton Network, a blockchain designed for regulated financial markets.
Lloyds Bank Corporate Markets, part of Lloyds Banking Group, utilised these deposits to purchase a tokenised gilt from Archax.
Archax then moved the underlying funds back into its regular Lloyds account, demonstrating how transactions can flow between blockchain and traditional banking systems.
The firm says this transaction highlights how tokenisation can bring traditional instruments, such as gilts, into the digital ecosystem.
The UK government is also exploring the possibility of issuing its own digital securities, including launching a pilot Digital Gilt Instrument (DIGIT).
As part of this transaction, Lloyds also ran its own validator node on the Canton Network, which verifies and secures transactions on the network.
Surath Sengupta, head of transaction banking products at Lloyds, remarks: “Tokenisation allows us to bring real-world assets onto blockchain infrastructure, creating opportunities for businesses to transact with greater speed, transparency, and flexibility.
“Crucially, these advantages come without losing the benefits of traditional cash, as tokenised deposits can continue to earn interest and remain protected by the Financial Services Compensation Scheme.”
Graham Rodford, CEO and co-founder at Archax, adds: “This transaction shows how tokenised real-world assets can deliver real-world benefits for institutions.
"Instant settlement and enhanced transparency are game-changers, and we’re proud to work with Lloyds and Canton to lead the way in shaping the next generation of financial markets.”
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