Just asked family and nobody’s heard this expression. Curious that if it’s supposed to be derived from a European city it’s common in the USA but not here. When I hear the word Toledo I think first of a Spanish city, then Toledo steel (for swords), then a Christian vs Muslim battle in the Middle Ages (hence the ‘holy’) and then I remember there’s a place in Ohio.

Interesting - when I happened to come across it in a book or on TV I always knew what it meant, but never thought about the origins.

It's also in A Christmas Carol. I had forgotten all about that one and I have several books illustrated by Arthur Rackham. https://victorianweb.org/art/illustration/rackham/7.html

I remember in the musical Jesus Christ Superstar, Judas refuses to accept the money given to him for disclosing Christ's location. "I don't want your blood money." I really like that movie for the music and acting, but especially love the way the beginning and end are framed by "real" scenes where the actors arrive and leave. Another wonderful Norman Jewison film.