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.