TL;DR
- Stablecoin Pilot: Lloyds and Visa completed a seven-day live pilot that settled $750,000 in payment obligations using USDC, testing stablecoin settlement between a major UK banking group and Visa.
- Faster Settlement: Funds reached Visa in under an hour, including during weekends, highlighting how blockchain-based settlement could reduce delays.
- Multi-Chain Test: The trial used Lloyds’ Canton Network node and a separate public blockchain supported by Visa and demonstrating interoperability.
Lloyds and Visa completed a seven-day live stablecoin settlement pilot involving $750,000 in payment obligations, marking what Lloyds described as the first stablecoin settlement trial between Visa and a major UK banking group. The initiative focused on the settlement process that takes place between financial institutions rather than customer payments. For Lloyds and Visa, the goal was to explore whether stablecoins could improve the speed, transparency and flexibility of cross-border fund transfers.
Lloyds purchased USDC through UK-regulated digital asset exchange Archax to carry out a series of U.S. dollar settlement transactions. The volume was booked through Lloyds’ Corporate Markets branch in Jersey before being transferred to Visa in the United States. According to the bank, funds reached Visa in under an hour, including over the weekend.
Testing Stablecoin Settlement in Real Conditions
The Lloyds and Visa pilot moved beyond theoretical discussions by using live payment obligations in a real-world environment. The seven-day test covered multiple U.S. dollar settlement obligations totaling $750,000 and examined how stablecoins could work alongside existing settlement processes. According to Lloyds, Lloyds and Visa assessed the impact of blockchain-based settlement on transaction speed, operational efficiency and visibility into fund movements.
Traditional cross-border settlement can take a day or more when transactions are initiated outside standard banking hours. The pilot demonstrated that settlement activity could continue around the clock, including weekends and holidays. Peter Left, Head of Digital Assets at Lloyds, said the trial allowed the bank to test those capabilities in a practical setting rather than relying solely on theoretical models.
How the Pilot Used Multiple Blockchain Networks
A notable aspect of the trial was its use of different blockchain infrastructures. How Lloyds and Visa approached interoperability was a key part of the experiment. Lloyds operated its own node on the Canton Network and used the platform’s configurable privacy features. The test also showed Lloyds and Visa working across separate blockchain environments, with Visa supporting settlement on an unnamed public blockchain. The arrangement demonstrated the ability to complete settlement activity across different networks.
What the Results Could Mean
For Lloyds and Visa, the results highlighted the potential for faster access to funds and improved liquidity management. Greater certainty around settlement timing may help institutions manage obligations more efficiently, particularly outside traditional banking schedules. Beyond the immediate trial, Lloyds and Visa said the initiative forms part of broader efforts to explore digital assets and tokenized forms of money as tools for modernizing the movement of value between businesses and financial institutions.
