Why Lloyds Is Betting On Blockchain, Not Crypto Speculation

Benzinga01-07

The blockchain revolution is no longer confined to speculative crypto markets and decentralized finance protocols. Traditional financial institutions are now actively deploying blockchain technology ...

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Traditional financial institutions are now actively deploying blockchain technology ...</p>\n\n<a href=\"https://www.benzinga.com/Opinion/26/01/49754679/why-lloyds-is-betting-on-blockchain-not-crypto-speculation\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0048584097.USD","symbol_name":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) INC","start_time":0,"source_url":"https://www.benzinga.com/Opinion/26/01/49754679/why-lloyds-is-betting-on-blockchain-not-crypto-speculation","article_id":"2601017718","we_media_id":null,"thumbnails":[],"rights":{"source":"Benzinga","url":"https://www.benzinga.com/Opinion/26/01/49754679/why-lloyds-is-betting-on-blockchain-not-crypto-speculation","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2601017718","pubTimestamp":1767797182,"columns":[],"sourceInfo":{"source_id":"Benzinga","name":"Benzinga Cypto"},"weMediaInfo":null,"summary":"The blockchain revolution is no longer confined to speculative crypto markets and decentralized finance protocols.","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0048584097.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) INC","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU2054465674.USD":"UBS (LUX) KEY SELEC SICAV DIGITAL TRANSFORMATION T \"P\" (USD) ACC","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","IE00BBT3K403.USD":"LEGG MASON CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A(USD) ACC","BK4581":"高盛持仓","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","BK4585":"ETF&股票定投概念","LU1481011671.HKD":"FIDELITY GLOBAL DIVIDEND \"A\" (HKDHDG) INC","LU0203347892.USD":"SCHRODER ISF QEP GLOBAL ACTIVE VALLUE \"A\" (USD)  INC AV","IE0034235295.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"A\" (USD) ACC","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","LU1481011911.USD":"FIDELITY GLOBAL DIVIDEND \"A\" (USDHDG) INC","IE00B3PB1722.GBP":"GUINNESS GLOBAL EQUITY INCOME \"C\" (GBP) INC","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0345770308.USD":"NINETY ONE GSF GLOBAL STRATEGIC EQUITY \"A\" (USD) ACC","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","IE00B3QW5Z07.USD":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (USD) ACC","LU2756315318.SGD":"ALLIANZ INCOME AND GROWTH \"AMG\" (SGDHDG) INC A","BK4504":"桥水持仓","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","LU1599440770.SGD":"FIDELITY GLOBAL DIVIDEND \"A\" (SGDHDG) INC","LU0265550359.USD":"BGF SYSTEMATIC GLOBAL ENHANCED EQUITY YIELD \"A2\" (USD) ACC","LU2237443382.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA USD","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU0345770993.USD":"NINETY ONE GSF GLOBAL STRATEGIC EQUITY \"A\" (USD) INC","BTC":"Grayscale Bitcoin Mini Trust","BK4550":"红杉资本持仓","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","SG9999002232.USD":"Allianz Global High Payout USD","BLK":"贝莱德","IE00B3S45H60.SGD":"Neuberger Berman US Multicap Opportunities A Acc SGD-H","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU1244550494.USD":"FRANKLIN GLOBAL MULTI-ASSET INCOME \"A\" (USDHEDGED) ACC","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU0238689110.USD":"贝莱德环球动力股票基金","LU1116320737.USD":"BGF SYSTEMATIC GLOBAL ENHANCED EQUITY YIELD \"A6\" (USD) INC","LU0942090050.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD)  INC","BK4207":"综合性银行","IE0034235303.USD":"PINEBRIDGE US RESEARCH ENHANCED CORE EQUITY \"A\" (USD) ACC","LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","LYG":"劳埃德","LU1261432733.SGD":"Fidelity World A-ACC-SGD","LU2106854487.HKD":"ALLIANZ THEMATICA \"AMG\" (HKD) INC","LU2417539215.USD":"ALLIANZ GLOBAL INCOME \"AMF\" (USD) INC","LU0731783394.SGD":"Fidelity Global Dividend A-MINCOME(G)-SGD","LU0882574139.USD":"富达环球消费行业基金A ACC","LU0106831901.USD":"贝莱德世界金融基金A2","LU2552382132.HKD":"WELLINGTON US BRAND POWER \"A\" (HKD) ACC","LU0345769128.USD":"NINETY ONE GSF GLOBAL EQUITY \"A\" (USD) ACC"},"translate_title":"为什么劳埃德银行押注区块链，而不是加密货币投机","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BLK":1,"LYG":1,"BTC":1},"content_text":"The blockchain revolution is no longer confined to speculative crypto markets and decentralized finance protocols. Traditional financial institutions are now actively deploying blockchain technology to solve real operational challenges, and Lloyds Banking Group Plc (NYSE:LYG) is emerging as one of the most aggressive players in this space. While headlines focus on Bitcoin (CRYPTO: BTC) price movements and meme coin rallies, a quieter transformation is unfolding inside one of Britain’s oldest banks, one that could reshape how the entire financial system operates.In December 2025, Lloyds CEO Charlie Nunn announced the bank had successfully piloted tokenized deposits across the United Kingdom and plans a full rollout by the first half of 2027. This isn’t just another proof of concept. Nunn told the Financial Times Global Banking Summit that combining tokenized deposits with artificial intelligence could fundamentally redesign mortgage processing, potentially cutting homebuying timescales from weeks to days while eliminating intermediaries from conveyancing processes. He compared the potential impact to the invention of the smartphone.The announcement positions Lloyds at the forefront of institutional blockchain adoption, joining major players like JPMorgan Chase & Co. (NYSE:JPM) and BlackRock Inc. (NYSE:BLK) in bringing Web3 technology into traditional finance. But unlike decentralized finance platforms that promise to replace banks entirely, these institutions are using blockchain to enhance existing services, creating a fascinating tension between two competing visions of the financial future.Tokenized Deposits Versus Decentralized LendingThe core innovation Lloyds is pursuing centers on tokenized deposits, digital representations of customer deposits backed by institutional funds and recorded on blockchain infrastructure. In September 2025, UK Finance launched a collaborative pilot with six major British banks, including Lloyds, testing programmable payments for fraud prevention, faster remortgaging processes, and streamlined settlement of tokenized assets.Compare this controlled institutional approach with decentralized finance, where protocols like Aave handle billions in lending volume without any central authority. As of May 2025, Aave alone holds approximately 45 percent of total value locked in DeFi, managing around 25.4 billion dollars through purely algorithmic smart contracts. Users deposit cryptocurrency as collateral, borrow against it at variable interest rates, and everything executes automatically without human intermediation.DeFi platforms operate around the clock with near instant settlement, offering global accessibility to anyone with an internet connection and a crypto wallet. There’s no credit check, no paperwork, no approval process. You either have sufficient collateral or you don’t. Traditional banks, even with blockchain infrastructure, will never match that level of permissionless access.Yet DeFi’s strength is also its weakness. When things go wrong, there’s no customer service department to call. If you lose your private keys, your funds are gone forever. If a smart contract contains a bug, hackers can drain millions in seconds. The DeFi sector has lost billions to exploits, and regulatory uncertainty remains a persistent challenge.Lloyds and other traditional institutions are betting they can capture blockchain’s operational benefits while maintaining the guardrails that make average consumers comfortable. Tokenized deposits would offer instant settlement and programmable features while keeping funds under regulatory oversight, protected by deposit insurance, and recoverable if something goes wrong.Real World Asset Tokenization Takes Center StageLloyds has already demonstrated practical blockchain applications beyond deposits. In July 2025, the bank completed a landmark transaction with Aberdeen Investments and digital asset exchange Archax, using tokenized money market fund units and tokenized UK government bonds as collateral for foreign exchange trades. The digital tokens were issued and transferred on the Hedera Hashgraph public permissioned blockchain, marking what Lloyds called a significant milestone for regulated digital assets.This type of real world asset tokenization has become the fastest growing segment in blockchain adoption. Assets under management in tokenized money market funds grew from 4 billion dollars at the start of 2025 to 8.6 billion dollars by November, representing 110 percent growth. JPMorgan launched its first tokenized money market fund on Ethereum (CRYPTO: ETH) in December 2025, seeding it with 100 million dollars. BlackRock’s BUIDL fund has attracted 2 billion dollars in assets, demonstrating institutional appetite for blockchain native treasury products.Here’s where the comparison with decentralized markets gets interesting. DeFi enthusiasts have long promoted synthetic assets, tokens that track the price of real world assets without actually holding the underlying asset. But tokenized real world assets from traditional institutions are fundamentally different. When BlackRock or JPMorgan tokenizes a treasury fund, it’s backed by actual government securities held in custody. The blockchain simply provides more efficient infrastructure for moving ownership and settling transactions.This distinction matters enormously for institutional adoption. Compliance teams at pension funds and insurance companies can’t invest in synthetic exposures created by anonymous smart contracts. They need regulated custodians, audited holdings, and legal clarity around ownership rights. Traditional finance blockchain applications provide that structure while still capturing efficiency gains.Where Is The Value Actually Being Unlocked?After examining both traditional finance blockchain adoption and decentralized alternatives, a pattern emerges. The two approaches are unlocking value in fundamentally different ways, targeting different user bases, and solving different problems.Decentralized finance excels at financial inclusion and permissionless innovation. Someone in a developing country without access to traditional banking can participate in global lending markets through DeFi. Developers can launch new financial products without asking anyone’s permission. Users maintain complete control over their assets and data. These are powerful benefits that traditional finance can never fully replicate.But DeFi struggles with the same challenges that make it appealing. Permissionless access means criminals have equal access. Code based automation means bugs can cause catastrophic losses. Lack of intermediaries means no customer support when things go wrong. Regulatory uncertainty threatens the entire ecosystem.Traditional finance blockchain applications take the opposite tradeoff. They sacrifice permissionless access and maximum decentralization in exchange for regulatory compliance, customer protection, and integration with existing infrastructure. For institutional investors managing pension funds or insurance portfolios, these aren’t optional features.The value unlocking happens in different places. DeFi creates new possibilities for financial participation and experimentation. Traditional finance blockchain improves operational efficiency and reduces costs within proven business models. Both are valuable, but they serve different needs.Lloyds’ mortgage tokenization plans illustrate this perfectly. Could you create a decentralized mortgage lending protocol using smart contracts? Technically yes. But would mainstream homebuyers trust it? Would regulators approve it? Would it integrate with existing property registries and title insurance systems? Probably not anytime soon.What Lloyds is proposing keeps all the traditional safeguards while using blockchain to eliminate friction points. Tokenized deposits could settle instantly rather than taking days. Smart contracts could automatically verify documentation rather than requiring manual review. The blockchain infrastructure enables these improvements while maintaining regulatory oversight.The real story isn’t traditional finance versus decentralized finance. It’s how these two parallel systems are starting to intersect in unexpected ways. JPMorgan’s partnership with Chainlink and Ondo Finance in May 2025 demonstrated this convergence. BlackRock’s tokenized money market fund is now accepted as eligible collateral on crypto exchanges. These bridges between TradFi and DeFi are multiplying rapidly.Lloyds’ aggressive blockchain adoption signals that traditional finance is taking Web3 seriously, not as a threat to be crushed but as infrastructure to be harnessed. The bank’s planned 2027 rollout of tokenized deposits could become a template for modernizing retail banking across Europe and beyond.The crypto community often dismisses these institutional blockchain projects as missing the point of decentralization. But perhaps they’re solving a different problem. Not everyone wants to be their own bank. Most people want banking services that work better, cost less, and settle faster. If blockchain technology can deliver those improvements while maintaining consumer protections, that’s valuable even if it’s not fully decentralized.The question isn’t whether blockchain will transform finance. It already is. The question is which version of blockchain finance will capture mainstream adoption first: the permissionless decentralized vision or the regulated institutional approach. Based on current trajectories, the answer might be both, each serving different needs in an increasingly complex financial landscape. Lloyds’ blockchain strategy represents a bet that institutional credibility plus technological efficiency beats pure decentralization for serving mainstream customers, and with tokenized deposits rolling out in 2027, we’re about to find out if that bet pays off.Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.BTCGrayscale Bitcoin Mini Trust (BTC)$40.42-1.17%Overview$BTCBitcoin$92028.00-1.78%$ETHEthereum$3194.70-3.06%BLKBlackRock Inc$1110.44-0.17%JPMJPMorgan Chase & Co$330.87-1.12%LYGLloyds Banking Group PLC$5.38-1.10%Market News and Data brought to you by Benzinga APIs© 2026 Benzinga.com. Benzinga does not provide investment advice. 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