#UKFinance

5 articles tagged #UKFinance — curated RWA tokenization coverage.

#Blockchain #Hedera #Tokenization #Archax #AssetManagement #BaillieGifford #Barclays #FXMarkets #GBTD #GDPGrowth

8.5

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.

#Archax

HM Treasury Spotlights Hedera as UK Tokenization Benchmark in £33 Billion Wholesale Markets Push

9.0

Infrastructure

HM Treasury Spotlights Hedera as UK Tokenization Benchmark in £33 Billion Wholesale Markets Push

The UK government has released the first Wholesale Digital Markets Champion report, authored by Chris Woolard, which identifies tokenization as a critical growth engine for the nation's financial sector. The report highlights a successful FX trade executed by Lloyds Banking Group, abrdn, and Archax on the Hedera network as a benchmark for future institutional adoption. By leveraging tokenized real-world assets, the UK aims to capture significant economic growth, with projections suggesting an additional £33 billion in annual output and £14 billion in tax revenue by 2035. The initiative establishes a clear roadmap for the next 12 months, focusing on nine action groups and a target for a live tokenized repo trial by spring 2027. This strategic push is designed to maintain the UK's competitive edge against the US and EU in the global race for digital finance dominance. The report emphasizes that tokenized markets are a network game, necessitating rapid policy and regulatory alignment to secure early-mover advantages. Ultimately, the government's endorsement of Hedera-based pilots signals a preference for regulator-ready, public-permissioned infrastructure to modernize wholesale market operations.

#Tokenization #Hedera #UKFinance

genfinity.io·2h ago

Rewiring Finance: Tokenisation as a Catalyst for UK Growth

7.5

Infrastructure

Rewiring Finance: Tokenisation as a Catalyst for UK Growth

Barclays and PwC have released a joint report analyzing the potential for tokenization to transform the UK economy by creating a more connected financial system. The study estimates that widespread adoption of tokenized assets could unlock up to £33 billion in additional annual GDP by 2035. Two-thirds of these economic benefits are expected to flow into sectors beyond traditional financial services, impacting businesses and households directly. The report identifies wholesale markets, including settlement and collateral mobilization, as the immediate priority for UK adoption. It emphasizes that the UK's competitive advantage lies in its ability to act as a trusted bridge for interoperability between global tokenized platforms. To capture this growth, the authors urge policymakers to focus on strategic areas like corporate bonds, private markets, and infrastructure finance. Failure to establish clear regulatory pathways risks losing liquidity and market activity to other global financial centers.

#Tokenization #UKFinance #Barclays

home.barclays·6d ago

Why Is Now the Right Time for More Sovereign Tokenisation Developments?

6.5

Infrastructure

Why Is Now the Right Time for More Sovereign Tokenisation Developments?

Peter Left, Head of Digital and Market Innovation at Lloyds Banking Group, discusses the Great British Tokenised Deposit (GBTD) initiative as a strategic move to solidify the UK's leadership in digital finance. The initiative emphasizes integrating blockchain technology into existing banking infrastructure rather than attempting to replace traditional financial systems. By focusing on tokenized deposits, the project aims to maintain strict compliance with current regulatory standards while enhancing operational efficiency. This development represents a significant shift in institutional mindset, moving toward the legitimization of distributed ledger technology within sovereign financial frameworks. The GBTD initiative highlights the importance of national versions of tokenized money to preserve domestic financial sovereignty and stability. As global markets evolve, the integration of blockchain into established banking systems is becoming a critical priority for major financial institutions. This approach provides a blueprint for how sovereign nations can leverage tokenization to modernize their monetary systems while maintaining necessary oversight and control.

#Blockchain #TokenizedDeposits #LloydsBankingGroup

Finextra — Crypto·Jun 27

Baillie Gifford launches UK's first 'fully native' tokenised fund

8.5

Active Strategies

Baillie Gifford launches UK's first 'fully native' tokenised fund

Baillie Gifford has launched the UK's first native tokenised fund, marking a significant milestone for the integration of traditional asset management with blockchain technology. The fund, which is structured as an open-ended investment company, utilizes tokenization to streamline administrative processes and enhance operational efficiency for investors. By leveraging distributed ledger technology, the firm aims to reduce the friction typically associated with fund subscriptions and redemptions in the UK market. This development represents a shift in how institutional asset managers approach digital infrastructure, signaling a broader trend toward the modernization of investment vehicles. The initiative highlights the growing regulatory and technical readiness within the UK to support tokenized financial products. As a major player in the investment space, Baillie Gifford's move provides institutional validation for the use of blockchain in fund distribution. This transition is expected to pave the way for further adoption of tokenized assets among traditional financial institutions seeking to improve liquidity and transparency.

#Blockchain #BaillieGifford #UKFinance

investmentweek.co.uk·Jun 27

#UKFinance

Hedera enables UK’s first tokenized collateral FX trades with Lloyds, Aberdeen and Archax

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HM Treasury Spotlights Hedera as UK Tokenization Benchmark in £33 Billion Wholesale Markets Push

Rewiring Finance: Tokenisation as a Catalyst for UK Growth

Why Is Now the Right Time for More Sovereign Tokenisation Developments?

Baillie Gifford launches UK's first 'fully native' tokenised fund