Lloyds Bank completed a stablecoin settlement pilot.
One the leading banking groups in the UK officially announced successful transfers amounting to $750K sent in USDC stablecoin as a cross-border settlement use-case.
This was in partnership with Visa and Archax.
One of the highlights is the transaction being carried over a weekend, a sought-after concept for banks.
The pilot itself lasted for a full week between the U.S. and UK jurisdictions. Recently, Lloyds was named as part of the UK Finance tokenized deposits testing.
Momentum for Innovation Rises in Fall 2026
September and October started off strong for stablecoins and tokenized deposits.
Both stablecoins and tokenized deposits continue to be at the forefront of innovation at international banks and large financial institutions. Each picks their preferred use-case, and there are certainly many to choose from, including tokenization solutions.
In this particular instance, the focus was on showing how time delays and working hours restrictions should ideally be a thing of the past. Lloyds also experimented with the Canton Network.
Back in February, the Canton Network partnered with Societe General to assist with EURCV and USDCV.
One of the more interesting aspects of Lloyds settling stablecoins is the use of USDC – a dollar-backed stablecoin.
Circle has worked hard to position itself as the most regulated stablecoin for large businesses and global institutions. However, a UK bank choosing to settle in USD stablecoin is quite a signal to the national UK stablecoin frameworks being progressed.
Adoption of non-USD currency stablecoins, such as GBP, is a priority for many in the industry.
At least on the domestic front, UK banks part of Finance UK are expected to execute some of their regular transfer and settlement volumes on the tokenized deposit network built in partnership with Quant once it entertains going live sometime in 2027.
Recently, Quant was also selected by the Clearing House to build its own tokenized deposit platform.
