Lloyds & Archax Utilize Canton for Tokenization Pilot, How Does It Compare to Hedera AllinCrypto January 9, 2026
Lloyds, Archax, and Canton Network completed a defining transaction event, the first-ever UK gilt purchase using tokenised sterling deposits on a public blockchain.
In the pilot, Lloyds issued tokenized deposits on Canton Network (CC), which were then used by Lloyds Bank to purchase tokenized UK Gilts from Archax.
The event is similar to how Hedera Hashgraph was utilized for tokenization experiments between Aberdeen Investments, Archax, and Lloyds, and institutional-focused networks are becoming popular among UK banking participants.
Canton Network Used in Tokenization Experiment With UK Gilts
The funds were subsequently redeemed back into a traditional Lloyds account, demonstrating seamless interoperability between blockchain-based assets and existing banking infrastructure.
According to Lloyds, Canton was chosen for the experiment due to the network being purpose-built for regulated financial markets from the ground up, similar to other chains like Hedera, Stellar.
Unlike other networks, Canton allows institutions to benefit from shared infrastructures and atomic settlement while preserving confidentiality with unique privacy features that other chains do not have as of yet.
Like Zcash, Cardano’s Midnight and Dusk, Canton is the most institutionally driven private network with strong regulatory controls and data secrecy, features that are attractive to firms, and which many networks are playing catch-up to.
The combination of privacy and regulatory compliance makes Canton a network of choice for banks or institions like the DTCC that need public-network benefits, such as interoperability and scalability, without exposing sensitive transaction data.
Lloyds Bank committed to the experiment by using its own validator node, reinforcing the chain’s institutional-grade security and governance while proving how tokenised deposits can retain features such as interest accrual and FSCS protections.
Comparison to Lloyds 2025 Hedera Hashgraph Experiment
This Canton Network pilot builds upon earlier experimentations by Lloyds, Archax, and Aberdeen Investments in 2025 using Hedera Hashgraph.
The previous initiative focused on smart contract–driven collateral management, where tokenised assets like money market funds (MMFs) were used to automate margins and reduce settlement delays.
Hedera’s strengths with low-cost transactions and fast finality make it well-suited for frequent collateral movements that Lloyds are looking to manage using blockchains and distributed ledgers.
Main differences between Canton’s usage and Hedera‘s lie in use case specifics. Hedera was leveraged primarily for programmable collateral and wider market efficiencies, while Canton is being positioned as a shared settlement layer for tokenised cash and securities across institutions.
Together, the experiments show Lloyd’s multi-network approach to selecting infrastructures based on regulatory fit and financial requirements, with possible full-time use cases in the near future or within 2026.
The post Lloyds & Archax Utilize Canton for Tokenization Pilot, How Does It Compare to Hedera first appeared on AllinCrypto.
