TechFlow News, January 7th: According to CoinDesk, 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 (gilts). This transaction was carried out in collaboration with the crypto trading platform Archax and the privacy-oriented Canton Network, demonstrating the application of blockchain technology in the traditional financial sector.
The transaction process involved Lloyds Bank issuing tokenized deposits on the Canton Network, followed by Lloyds Bank's corporate markets division using these deposits to purchase Archax's tokenized gilts. Finally, Archax transferred the funds back to its regular Lloyds account.
Surath Sengupta, Head of Transaction Banking Products at Lloyds Bank, stated that tokenized deposits offer advantages such as instant settlement, automated agreements, and enhanced transparency, while still earning interest and remaining within the protection scope of the Financial Services Compensation Scheme deposit guarantee.
