- Lloyds and Visa tested stablecoin settlement for cross-border payments operating around the clock.
- The pilot connected Lloyds’ private Canton network with a separate public blockchain used by Visa.
- The test examined how digital money could improve payment speed, transparency, flexibility and liquidity management.
Lloyds and Visa Test Stablecoin Settlement Across Blockchain Networks
Lloyds and Visa have tested how stablecoins could help overcome timing constraints in traditional cross-border settlement. Conventional banking processes can take a day or more when transactions are initiated outside normal banking hours, whereas stablecoin settlement can operate around the clock.
For banks and businesses, continuous settlement could provide greater visibility and certainty over incoming funds. It could also support more effective liquidity management and reduce the amount of capital tied up while cross-border transactions remain pending.
Pilot Connects Private and Public Blockchains
The pilot also examined whether settlement could take place across different blockchain environments. Lloyds operated its own node on Canton, using the network’s configurable privacy features, while Visa supported settlement on a separate public blockchain.
The test demonstrated interoperability between private and public blockchain networks. It also highlighted the potential importance of linking separate blockchain ecosystems as digital asset activity expands across multiple chains.
Lloyds Explores Digital Assets and Tokenised Money
The pilot forms part of Lloyds’ broader exploration of digital assets and tokenised money as potential infrastructure for moving value between businesses and financial institutions.
Lloyds Head of Digital Assets Peter Left said the test showed how digital money could make international payments faster, more transparent and flexible. Visa’s UK and Ireland Group Country Manager Rob Cameron said the pilot demonstrated how stablecoins could operate alongside existing banking infrastructure and give institutions more settlement options.
Why This Matters
Cross-border settlement remains affected by banking-hour restrictions, processing delays and the need to maintain capital while payments are in transit. The Lloyds and Visa pilot focused on whether stablecoins and blockchain interoperability could address some of those constraints without requiring institutions to rely on a single blockchain environment.
By testing a connection between Lloyds’ private Canton network and a public blockchain supported by Visa, the pilot addressed the practical challenge of moving value across different digital-asset infrastructures. The test does not indicate a wider rollout, but it contributes to Lloyds’ ongoing assessment of digital assets and tokenised money for institutional payments.
Frequently Asked Questions
What did Lloyds and Visa test?
They tested stablecoin settlement for cross-border payments, including settlement across Lloyds’ private Canton network and a separate public blockchain supported by Visa.
How could stablecoin settlement help businesses and banks?
Stablecoin settlement can operate around the clock, potentially giving institutions greater visibility over incoming funds, improving liquidity management and reducing capital tied up during payment delays.
What was the significance of using different blockchains?
The pilot demonstrated interoperability between private and public blockchain networks, an ability that could become more important as digital asset activity expands across multiple blockchain ecosystems.
