Lloyds Bank completes the UK's first transaction of purchasing government bonds using tokenized deposits

According to CoinDesk, the UK lending institution Lloyds Banking Group has claimed that it has completed the UK's first transaction using tokenized deposits to purchase UK government bonds.

Lloyds Bank is the third largest bank in the UK by market capitalization. The bank stated that it completed the purchase of UK government bonds using the crypto trading platform Archax and the privacy-focused Canton network. This purchase demonstrates that tokenization technology can transform traditional banking by converting real-world assets into digital form, enabling instant buying, selling, or transferring.

In this transaction, Lloyds Bank plc, a subsidiary of Lloyds Bank, issued tokenized deposits on the Canton network. Subsequently, Lloyds Bank Corporate Markets used these deposits to pay for the purchase of tokenized government bonds from Archax. Finally, Archax returned the underlying funds to its Lloyds Bank conventional account.