Hedera enables UK’s first tokenized collateral FX trades with Lloyds, Aberdeen and Archax
Lloyds Banking Group, Aberdeen, and Archax have successfully executed the United Kingdom's first foreign exchange trades using tokenized real-world assets as collateral. The pilot utilized tokenized shares in an Aberdeen money market fund and digitized UK government bonds, known as gilts, to secure FX transactions on the Hedera blockchain. By leveraging Archax’s FCA-regulated platform and permissioned DeFi network, the participants achieved near real-time collateral movement, addressing the operational friction and settlement delays inherent in traditional financial workflows. This development is significant for the RWA market as it demonstrates how institutional-grade blockchain infrastructure can replace manual, slow-moving collateral management processes. With the UK FX market processing approximately $5.4 trillion daily, the ability to move collateral instantaneously reduces liquidity risk and capital inefficiency during market volatility. The project was recognized by the HM Treasury-backed Wholesale Digital Markets Champion report as a leading example of scaling digital wholesale markets. By integrating regulated oversight with on-chain efficiency, this pilot provides a scalable blueprint for financial institutions to adopt blockchain-based solutions for complex margin activities.
- ▸Lloyds, Aberdeen, and Archax completed the UK's first FX trades using tokenized collateral.
- ▸Transactions were executed on the Hedera blockchain using tokenized money market funds and gilts.
- ▸The pilot utilized Archax’s FCA-regulated infrastructure and permissioned DeFi for near real-time settlement.
- ▸The project addresses inefficiencies in the $5.4 trillion daily UK FX and derivatives market.
Archax is the UK's first digital asset exchange and tokenization platform authorized by the Financial Conduct Authority (FCA), designed to bridge traditional finance with blockchain technology. Hedera is a public, enterprise-grade distributed ledger technology governed by a council of global organizations, known for its high throughput, low energy consumption, and focus on institutional security.