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Aberdeen & Lloyds Use Tokens as Collateral for FX Trades

  • Lloyds Banking Group, Aberdeen Investments, and Archax collaborate to use tokenised real-world assets as collateral for foreign exchange trades in the UK.
  • This initiative showcases how regulated digital assets can serve as collateral in a significant market, streamlining processes and reducing operational costs.
  • The collaboration aims to enhance collateral efficiency, minimize counterparty risk, and potentially reduce systemic risk during market stress by enabling digital transfers instead of forced asset sales.
  • The successful pilot sets the stage for wider adoption of tokenised funds as collateral, reinforcing the UK's leadership in next-generation financial infrastructure.

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