First UK-Regulated Crypto Exchange Handles Traditional FX Trading

Lloyds Banking Group and fund manager Aberdeen Investments signed an agreement with Archax on July 14, 2025 to conduct foreign-exchange transactions on a blockchain network, Bloomberg reports. 

The partnership allows both institutions to use tokenized real-world assets, such as UK gilts and units of Aberdeen’s money market fund, as collateral for their FX trading on Archax’s regulated platform. Initial trading will cover major currency pairs, including GBP/USD and EUR/GBP.

The system aims to reduce settlement times and increase transparency through on-chain record-keeping. Participants can post tokenized deposits or digital asset representations as collateral or settlement tools, thereby cutting dependence on traditional correspondent banking networks.

A Lloyds spokesperson said the partnership reflects the bank’s strategy to test distributed-ledger technology in wholesale markets. Archax co-founder Andrew Flatt added that the collaboration brings institutional FX trading onto a fully regulated digital exchange.

The partnership represents one of the first uses of a UK-based, regulated crypto exchange for standard FX trading. Archax, founded in London in 2018, became the first digital securities exchange to receive Financial Conduct Authority (FCA) approval. The platform has built tokenization engines for real-world assets, including equities and bonds, which now support its FX service.

Archax provides exchange, brokerage and custody services under UK regulatory oversight, connecting traditional financial institutions with blockchain markets. Lloyds Banking Group ranks among the UK’s largest retail and commercial banks. Aberdeen Investments manages over $500 billion in assets globally. Both firms have been testing blockchain applications in capital markets to improve efficiency and resilience.