Back
Lloyds Banking Group Executes UK’s First Tokenized Bond Purchase

Lloyds Banking Group Executes UK’s First Tokenized Bond Purchase

Lloyds Bank’s January 7 transaction marks the world’s first use of tokenized pound deposits on a public blockchain, executed with Archax and Canton Network.

Fact Check
The evidence strongly and consistently supports the statement. The most authoritative source, an official press release from Lloyds Banking Group, directly claims the event as the "UK's first public blockchain purchase of a tokenized gilt." A gilt is a type of UK government bond, which aligns perfectly with the statement. This primary claim is independently and uniformly corroborated by all other provided sources, including a highly reputable industry news outlet, CoinDesk, which also describes it as the UK's first. There are no contradictions or conflicting evidence presented. The confidence level is high due to the quality of the primary source and the unanimous agreement across all secondary sources. The truth probability is set slightly below 1.0 to account for the specific qualifier "public blockchain" used in the primary press release, which leaves a marginal theoretical possibility that a private or unannounced transaction of a different nature could have preceded it. However, based on the strong and consistent public evidence, the statement is very likely true.
    Reference: 12
Summary

On January 7, Lloyds Bank completed the UK’s first government bond purchase using tokenized deposits, marking the world’s first issuance of tokenized pound deposits on a public blockchain. The transaction, conducted via Archax and Canton Network, involved Lloyds Bank plc issuing tokenized deposits that Lloyds Bank Corporate Markets used to acquire a tokenized gilt from Archax. Archax subsequently moved the underlying funds back to its conventional Lloyds account. Lloyds highlighted benefits such as instant settlement, automated agreements, transparency, interest accrual, and deposit protection.

Terms & Concepts
  • Tokenized Deposits: Bank deposits represented as digital tokens on a blockchain, enabling faster and more efficient transactions.
  • Tokenized Bonds: Traditional bonds represented and traded as digital tokens on a blockchain platform.
  • Canton Network: A blockchain network designed to connect independent financial systems and enable secure, interoperable transactions.