Lloyds and Aberdeen use tokenized assets for FX collateral in UK first
Lloyds Banking Group and Aberdeen Investments finished the first professions of the United Kingdom guaranteed with real assets in tokénisés, at a blockchain driver with Archax.
Lloyds Banking Group and Aberdeen Investments have joined forces with an exchange of crypto regulated by the United Kingdom Archax to pilot FX transactions using real assets token as warranty, Bloomberg reported Monday.
In a first for the United Kingdom, the professions have exploited digital tokens representing both the Hearts of Aberdeen on the money market (TMMF) and the United Kingdom. These tokens were issued, transferred and held safely via Archax on the Hashgraph Hedera blockchain.
According to Peter Left, responsible for digital finance at Lloyds, the pilot aims to show that digital assets can be used as guarantee in real financial transactions without requiring new legal structures.
“Digital assets can be used on the regulated financial markets in existing legal frameworks here in the United Kingdom,” he said in a statement, adding that the use of blockchain technology allows greater collateral efficiency while reducing operational friction.
The Lloyds-Berdeen driver is part of the wider trend to modernize collateral systems using blockchain and tokenization. Several large institutions have launched similar projects aimed at improving the speed, transparency and efficiency of collateral transfers.
At the end of 2023, JP Morgan collaborated With BlackRock and Barclays via its Digital Assets ONYX platform to facilitate the transfer of money market funds to Tokenized for use as guaranteed in derivatives trade. The transaction, which has settled in a few minutes rather than day, presented the spectacular operational gains possible with the blockchain infrastructure.
In October of last year, the purpose, supported by the major British banks, notably Lloyds, Santander and UBS, pilot A platform fueled with blockchain to allow an intrajournal settlement of margin calls using the money from the Central Bank tokenized. This system uses digital tokens which represent real central bank funds organized via an omnibus account at the Bank of England.
Beyond the United Kingdom, similar initiatives are gaining momentum. More recently, the Central Bank of Singapore in partnership With Isda and Ant International To test the use of token banks and deposits for FX cross -border regulations, demonstrating how blockchain -based instruments could rationalize international financial flows.
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