Lloyds Bank completes the UK's first tokenized deposit to purchase government bonds transaction
TL;DR
Lloyds Bank has executed the UK's first transaction using tokenized deposits to buy government bonds, partnering with Archax and Canton Network. This innovation provides benefits like instant settlement and transparency while maintaining deposit protection.
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On January 7th, CoinDesk reported that Lloyds Banking Group, the UK's third-largest bank, announced the completion of the UK's first transaction using tokenized deposits to purchase government bonds (gilt-edged bonds), through a partnership with crypto trading platforms Archax and Canton Network. Surath Sengupta, Head of Transaction Banking Products at Lloyds Banking Group, stated that tokenized deposits offer advantages such as instant settlement, automated protocols, and increased transparency, while still allowing them to earn interest and remain within the Financial Services Compensation Scheme's deposit protection limits.