Lloyds Banking Group and Visa Complete Live Stablecoin Settlement Pilot

Lloyds Banking Group and Visa have finished a seven-day live pilot program using stablecoins to settle $750,000 in cross-border US dollar obligations. The test aimed to determine if blockchain-based settlement can offer more flexible and faster fund transfers between financial institutions.

During the trial, funds reached Visa in less than an hour, even when transactions occurred over the weekend. This marks the first time Visa has conducted a stablecoin settlement test with a major UK banking group. The focus of the pilot was specifically on settlement rather than payment execution.

Lloyds utilized USDC acquired through Archax, a UK-regulated digital asset exchange. The transactions were booked through the Corporate Markets branch of Lloyds in Jersey and settled with Visa in the US.

The pilot highlighted how stablecoins might overcome timing limitations inherent in traditional cross-border settlement. While conventional methods can take a day or longer if initiated outside of standard banking hours, stablecoin settlement functions around the clock. This could allow banks and businesses to improve liquidity management, reduce tied-up capital, and gain more certainty regarding incoming funds.

The test also explored interoperability between different blockchain environments. Lloyds operated a node on Canton, utilizing the network's privacy features, while Visa supported settlement on a separate public blockchain. This demonstrated the ability to connect private and public networks.

Peter Left, Head of Digital Assets at Lloyds, stated the test showed how digital money could make international payments more transparent, flexible, and faster. Rob Cameron, Visa’s UK and Ireland Group Country Manager, added that the pilot demonstrated how stablecoins could work alongside existing banking infrastructure to provide institutions with more settlement options.