Project Agorá starts live trials. Lloyds participates in 3 tokenized deposit transactions
RWA Signal Insight
InfrastructureLloyds Banking Group has successfully executed three live tokenized deposit transactions as part of the Bank for International Settlements' Project Agorá. This initiative aims to enhance the efficiency of wholesale cross-border payments by integrating tokenization into the regulated banking framework. By utilizing real money rather than simulations, the project has officially entered its Real-Value Testing phase. Lloyds participated in transactions involving the conversion of Swiss francs into British pounds and euros, demonstrating the ability to execute FX conversion, payment, and settlement simultaneously. This shift from prototype to live testing highlights the potential for tokenized deposits to significantly reduce settlement risk and operational friction. The project involves a broad coalition of eight central banks and over 40 private financial institutions coordinated by the BIS and the Institute of International Finance. These trials represent a critical milestone in proving that tokenized assets can function effectively within existing global financial infrastructures.
Key points
- Lloyds Banking Group completed three live tokenized deposit transactions via the BIS Project Agorá.
- Real-Value Testing phase enables simultaneous FX conversion, payment, and settlement for wholesale transactions.
- Project Agorá includes eight central banks and over 40 private institutions globally.
- Transactions involved Swiss francs, British pounds, and euros to test cross-border efficiency.
Background
Project Agorá is a collaborative initiative led by the Bank for International Settlements (BIS) designed to explore the integration of tokenized commercial bank deposits with wholesale central bank money. It seeks to address the inefficiencies of current cross-border payment systems, such as high costs and slow settlement times, by utilizing a unified ledger approach.