Lloyds, Aberdeen Complete U.K.'s First FX Trades Using Tokenized Collateral

Lloyds Bank and Aberdeen completed the U.K.'s first foreign-exchange trades backed by tokenized assets.

The collateral included a tokenized money-market fund and tokenized U.K. government bonds. Archax facilitated issuance and management of the tokens. The Hedera network powered the transactions.

The trades used tokenized assets as FX collateral. That differed from a separate Lloyds Banking Group transaction pairing a tokenized deposit with a tokenized U.K. government bond purchase, in which the deposit funded the purchase on a public blockchain.