Lloyds Bank Makes History with First UK Gilt Purchase Using Tokenized Deposits

Lloyds Bank has executed a landmark transaction, completing the United Kingdom's first-ever purchase of a government gilt (bond) using tokenized deposits. This pioneering move, conducted in collaboration with the Bank of England's "Rosalind" wholesale central bank digital currency (wCBDC) project, marks a significant step in integrating blockchain technology into traditional finance. The proof-of-concept successfully demonstrated the technical feasibility and efficiency of using a regulated, blockchain-based deposit token for settling high-value financial instruments. This innovation by Lloyds Banking Group highlights the growing institutional adoption of digital assets and tokenization for real-world asset (RWA) transactions, potentially paving the way for faster and more secure settlement systems in the future of finance (FinTech).