Hedera powers UK FX trades using tokenized money market funds and UK gilts as collateral with Lloyds, Aberdeen and Archax Onchain.
Lloyds Banking Group, Aberdeen Investments, and Archax completed the UK’s first FX trades using tokenized RWAs as collateral. The trades were executed on Hedera through a regulated digital asset framework.
The pilot used tokenized Aberdeen money market fund units and tokenized UK gilts as collateral. These assets supported foreign exchange trades between Lloyds and Aberdeen.
HM Treasury-backed Wholesale Digital Markets Champion report later cited the project. The report named the pilot as an example of industry progress in digital wholesale markets.
The UK handles about $5.4 trillion in daily FX and interest rate derivatives activity. That scale gives tokenized collateral tests wider relevance for institutional finance.
UK FX Trades Use Tokenized Collateral
The pilot addressed long-running issues in collateral and margining processes. These systems can be slow, costly, and hard to manage during market stress. Many workflows still depend on manual checks and delayed settlement.
Collateral is an asset used to reduce risk in a financial transaction. In FX markets, firms must move collateral quickly when market prices change. Slow movement can increase pressure and force asset sales.
The UK's first FX trades using tokenized RWAs as collateral, executed by @LloydsBank , @Aberdeen_plc, and @ArchaxEx on Hedera, just got a shoutout in the @HMTreasury-backed Wholesale Digital Markets Champion report as an exemplary industry achievement.
This is what institutional…
— Hedera (@hedera) July 14, 2026
Lloyds, Aberdeen, and Archax tested a regulated model for tokenized collateral. The model used digital versions of money market fund units and UK gilts. These tokens were used for FX trades between approved financial parties.
Archax Issues Assets on Hedera
Archax issued, transferred, and held the tokenized assets on Hedera. Besides, Archax is the UK’s first FCA-regulated digital asset exchange and tokenization platform. Its role connected regulated oversight with blockchain-based asset movement.
The pilot also used Archax’s Nest permissioned DeFi collateral transfer network. Permissioned DeFi means only approved users can access the system. This structure helps institutions test blockchain tools within controlled financial settings.
The technology lets users program and move tokenized assets on-chain in near real time. This can improve collateral mobility between banks, asset managers, and trading firms. It can also reduce work tied to settlement and margin processes.
Read also: HBAR Sees Fresh ETF Hype With 15 More Funds Awaiting SEC Approval
Treasury Report Notes Hedera-Based Pilot
The HM Treasury-backed report cited the pilot as an industry achievement.
The report focuses on scaling digital wholesale markets in the United Kingdom. Tokenized collateral is one area being tested by regulated financial firms.
Aberdeen’s Head of Product, Allan Trimmer, said Hedera matched several company values.
He cited transparency, corporate governance, and sustainability as reasons for using the network. He also described Hedera as one of the lowest-consumption networks available.
Hedera’s role centered on fast settlement and institutional-grade infrastructure. Its governance model includes a council of established global organizations.
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