In a landmark move for the UK's financial sector, Lloyds Bank has announced the completion of the nation's first transaction using Tokenised Deposits on a public blockchain. This pioneering step, revealed on Wednesday, 7 January 2026, also marks a global debut for sterling deposits on such a platform.
A New Era for Digital Finance
Lloyds Bank PLC executed this historic transaction on the Canton Network, a blockchain specifically engineered for regulated financial markets. The bank has hailed the development as a "landmark for digital finance" that demonstrates the revolutionary potential of tokenisation in traditional banking.
The process converts real-world assets into digital forms, enabling them to be bought, sold, or transferred with unprecedented speed. For businesses, this innovation is set to deliver significant advantages in how they manage capital and execute transactions.
Tangible Benefits for Businesses
Surath Sengupta, Head of Transaction Banking Products at Lloyds, emphasised the transformative nature of this pilot. He stated that it offers a glimpse into a financial future that is faster, smarter, and more efficient.
"Tokenisation allows us to bring real-world assets onto blockchain infrastructure, creating opportunities for businesses to transact with greater speed, transparency, and flexibility," Sengupta explained.
A crucial aspect of this innovation is that it retains the familiar safeguards of traditional banking. These Tokenised Deposits will continue to earn interest and remain protected under the Financial Services Compensation Scheme (FSCS), merging innovation with security.
Industry Leaders Hail a Game-Changer
Graham Rodford, CEO and co-founder of Archax, the digital asset exchange and custodian that partnered with Lloyds on this project, highlighted the practical benefits. He pointed to instant settlement and enhanced transparency as transformative features for institutional finance.
"This transaction shows how tokenised real-world assets can deliver real-world benefits for institutions," Rodford said. "We’re proud to work with Lloyds and Canton to lead the way in shaping the next generation of financial markets."
This pilot transaction is positioned as a critical foundational step. It aims to reshape how businesses manage liquidity and move money by allowing them to complete transactions on blockchain networks while retaining all the utility and protection of conventional deposits.
