Finance Share Share this article Copy linkX (Twitter)LinkedInFacebookEmail Lloyds Bank completes UK’s first gilt purcha Finance Share Share this article Copy linkX (Twitter)LinkedInFacebookEmail Lloyds Bank completes UK’s first gilt purcha

Lloyds Bank completes UK’s first gilt purchase using tokenized deposits

2026/01/07 18:45
5 min read
Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail

Lloyds Bank completes UK’s first gilt purchase using tokenized deposits

Lloyds enlisted the help of Archax and Canton Network to carry out the transaction.

By Ian Allison|Edited by Sheldon Reback
Jan 7, 2026, 10:45 a.m.
Make us preferred on Google
Lloyds Bank worked with Archax and Canton Network. (Shutterstock modified by CoinDesk)

What to know:

  • Lloyds Bank issued tokenized deposits on Canton, and Lloyds Bank Corporate Markets used the deposits to buy a tokenized gilt from Archax.
  • Archax then moved the underlying funds back into its regular Lloyds account.

British lender Lloyds Banking Group is claiming bragging rights for completing the first U.K. gilt purchase using tokenized deposits, or blockchain representations of fiat currency bank deposits.

Lloyds, the third-largest bank in the country by market capitalization, said it enlisted the help of crypto trading platform Archax and the privacy-focused Canton Network to buy the government debt. The bonds' name refers to the old gold-edged certificates.

STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Sign me up

The purchase illustrates how tokenization can transform traditional banking, turning real-world assets into digital forms that can be purchased, sold or transferred instantly, Lloyds said in a press release.

The transaction involved the company's Lloyds Bank plc unit issuing tokenized deposits on the Canton Network. Then Lloyds Bank Corporate Markets used the deposits to pay for a tokenized gilt from Archax. Finally, Archax moved the underlying funds back into its regular Lloyds account, the release said.

“This transaction offers a glimpse into the future of finance; faster, smarter, and more efficient," Surath Sengupta, head of transaction banking products at Lloyds, said in a statement. "Tokenisation allows us to bring real-world assets onto blockchain infrastructure, creating opportunities for businesses to transact with greater speed, transparency, and flexibility.”

Sengupta pointed out that tokenized deposits can continue to earn interest and remain in the Financial Services Compensation Scheme deposit protection program, so these advantages — instant settlement, automated agreements, improved transparency and security — come without losing the benefits of traditional cash.

ArchaxLloyds Banking GroupTokenization

More For You

KuCoin Hits Record Market Share as 2025 Volumes Outpace Crypto Market

Commissioned byKuCoin

KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.

What to know:

  • KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
  • This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
  • Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
  • Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
  • Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
View Full Report

More For You

Barclays invests in stablecoin settlement firm as tokenized infrastructure advances

Ubyx is building a framework to enable tokenized money to move between issuers and institutions, supporting the exchange and redemption of funds.

What to know:

  • Barclays has invested in Ubyx, a US startup developing clearing systems for tokenized money, such as tokenized bank deposits and regulated stablecoins.
  • Ubyx is building a common settlement framework to enable tokenized money to move between issuers and institutions, supporting the exchange and redemption of tokenized funds at par value.
  • The investment signals a growing push among traditional banks, including UBS, PostFinance, and Sygnum Bank, to lay the groundwork for blockchain-based payments that comply with existing financial regulations.
Read full story
Latest Crypto News

Barclays invests in stablecoin settlement firm as tokenized infrastructure advances

Metplanet valued at three-month high relative to bitcoin holdings after MSCI decision

Hedge Fund Karatage appoints IMC veteran Shane O’Callaghan as senior partner

Crypto traders can now take leveraged bets on silver via Binance Futures

Bitcoin and the Japanese yen are moving together like never before

Bitcoin miners chase AI demand as Nvidia says Rubin is already in production

Top Stories

Crypto traders can now take leveraged bets on silver via Binance Futures

Bitcoin and the Japanese yen are moving together like never before

XRP could outperform bitcoin as XRP/BTC chart shows rare Ichimoku breakout since 2018

Asia Morning Briefing: Bitcoin holds steady above $90K as fresh money returns to crypto

Metplanet valued at three-month high relative to bitcoin holdings after MSCI decision

Bitcoin miners chase AI demand as Nvidia says Rubin is already in production

Market Opportunity
Lorenzo Protocol Logo
Lorenzo Protocol Price(BANK)
$0.03262
$0.03262$0.03262
+1.02%
USD
Lorenzo Protocol (BANK) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

FCA komt in 2026 met aangepaste cryptoregels voor Britse markt

FCA komt in 2026 met aangepaste cryptoregels voor Britse markt

De Britse financiële waakhond, de FCA, komt in 2026 met nieuwe regels speciaal voor crypto bedrijven. Wat direct opvalt: de toezichthouder laat enkele klassieke financiële verplichtingen los om beter aan te sluiten op de snelle en grillige wereld van digitale activa. Tegelijkertijd wordt er extra nadruk gelegd op digitale beveiliging,... Het bericht FCA komt in 2026 met aangepaste cryptoregels voor Britse markt verscheen het eerst op Blockchain Stories.
Share
Coinstats2025/09/18 00:33
United States Building Permits Change dipped from previous -2.8% to -3.7% in August

United States Building Permits Change dipped from previous -2.8% to -3.7% in August

The post United States Building Permits Change dipped from previous -2.8% to -3.7% in August appeared on BitcoinEthereumNews.com. Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet. FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and FXStreet are not registered investment advisors and nothing in this article is intended…
Share
BitcoinEthereumNews2025/09/18 02:20
Google's AP2 protocol has been released. Does encrypted AI still have a chance?

Google's AP2 protocol has been released. Does encrypted AI still have a chance?

Following the MCP and A2A protocols, the AI Agent market has seen another blockbuster arrival: the Agent Payments Protocol (AP2), developed by Google. This will clearly further enhance AI Agents' autonomous multi-tasking capabilities, but the unfortunate reality is that it has little to do with web3AI. Let's take a closer look: What problem does AP2 solve? Simply put, the MCP protocol is like a universal hook, enabling AI agents to connect to various external tools and data sources; A2A is a team collaboration communication protocol that allows multiple AI agents to cooperate with each other to complete complex tasks; AP2 completes the last piece of the puzzle - payment capability. In other words, MCP opens up connectivity, A2A promotes collaboration efficiency, and AP2 achieves value exchange. The arrival of AP2 truly injects "soul" into the autonomous collaboration and task execution of Multi-Agents. Imagine AI Agents connecting Qunar, Meituan, and Didi to complete the booking of flights, hotels, and car rentals, but then getting stuck at the point of "self-payment." What's the point of all that multitasking? So, remember this: AP2 is an extension of MCP+A2A, solving the last mile problem of AI Agent automated execution. What are the technical highlights of AP2? The core innovation of AP2 is the Mandates mechanism, which is divided into real-time authorization mode and delegated authorization mode. Real-time authorization is easy to understand. The AI Agent finds the product and shows it to you. The operation can only be performed after the user signs. Delegated authorization requires the user to set rules in advance, such as only buying the iPhone 17 when the price drops to 5,000. The AI Agent monitors the trigger conditions and executes automatically. The implementation logic is cryptographically signed using Verifiable Credentials (VCs). Users can set complex commission conditions, including price ranges, time limits, and payment method priorities, forming a tamper-proof digital contract. Once signed, the AI Agent executes according to the conditions, with VCs ensuring auditability and security at every step. Of particular note is the "A2A x402" extension, a technical component developed by Google specifically for crypto payments, developed in collaboration with Coinbase and the Ethereum Foundation. This extension enables AI Agents to seamlessly process stablecoins, ETH, and other blockchain assets, supporting native payment scenarios within the Web3 ecosystem. What kind of imagination space can AP2 bring? After analyzing the technical principles, do you think that's it? Yes, in fact, the AP2 is boring when it is disassembled alone. Its real charm lies in connecting and opening up the "MCP+A2A+AP2" technology stack, completely opening up the complete link of AI Agent's autonomous analysis+execution+payment. From now on, AI Agents can open up many application scenarios. For example, AI Agents for stock investment and financial management can help us monitor the market 24/7 and conduct independent transactions. Enterprise procurement AI Agents can automatically replenish and renew without human intervention. AP2's complementary payment capabilities will further expand the penetration of the Agent-to-Agent economy into more scenarios. Google obviously understands that after the technical framework is established, the ecological implementation must be relied upon, so it has brought in more than 60 partners to develop it, almost covering the entire payment and business ecosystem. Interestingly, it also involves major Crypto players such as Ethereum, Coinbase, MetaMask, and Sui. Combined with the current trend of currency and stock integration, the imagination space has been doubled. Is web3 AI really dead? Not entirely. Google's AP2 looks complete, but it only achieves technical compatibility with Crypto payments. It can only be regarded as an extension of the traditional authorization framework and belongs to the category of automated execution. There is a "paradigm" difference between it and the autonomous asset management pursued by pure Crypto native solutions. The Crypto-native solutions under exploration are taking the "decentralized custody + on-chain verification" route, including AI Agent autonomous asset management, AI Agent autonomous transactions (DeFAI), AI Agent digital identity and on-chain reputation system (ERC-8004...), AI Agent on-chain governance DAO framework, AI Agent NPC and digital avatars, and many other interesting and fun directions. Ultimately, once users get used to AI Agent payments in traditional fields, their acceptance of AI Agents autonomously owning digital assets will also increase. And for those scenarios that AP2 cannot reach, such as anonymous transactions, censorship-resistant payments, and decentralized asset management, there will always be a time for crypto-native solutions to show their strength? The two are more likely to be complementary rather than competitive, but to be honest, the key technological advancements behind AI Agents currently all come from web2AI, and web3AI still needs to keep up the good work!
Share
PANews2025/09/18 07:00