Lloyds and CaixaBank Complete Live Tokenised Deposit Transactions
Lloyds Banking Group and CaixaBank have completed live tokenised deposit transactions as part of Project Agorá, marking another significant milestone in the evolution of wholesale cross-border payments. The real-value tests demonstrate how tokenised commercial bank deposits can streamline foreign exchange, payment, and settlement into a single, synchronised transaction, reducing the complexity that characterises today's international payment infrastructure.
The initiative forms part of Project Agorá, a global public-private collaboration led by the Bank for International Settlements (BIS) and the Institute of International Finance (IIF), bringing together eight central banks and more than 40 financial institutions to explore the future of tokenised wholesale payments. Among the most significant tests was a cross-currency transaction in which Lloyds Banking Group converted Swiss francs into sterling using tokenised commercial bank deposits.
The integrated approach has the potential to reduce settlement risk, improve transparency, and shorten payment times, addressing long-standing inefficiencies in correspondent banking and international treasury operations. According to Peter Left, Head of Digital and Markets Innovation at Lloyds Banking Group, linking payments, foreign exchange, and settlement within a regulated banking framework provides valuable insight into how tokenised deposits could reduce friction in real-world wholesale payments.
The latest trials build upon Lloyds' growing involvement in digital asset infrastructure. Global momentum is building behind tokenised deposits, with JPMorgan Chase, Citi, Bank of America, and Wells Fargo announcing plans to develop a shared tokenised deposit network expected to launch in 2027.