LSEG launches blockchain-based Digital Settlement Network

The London Stock Exchange (LSEG) has launched the Digital Settlement House (LSEG DiSH), an open-access platform designed to facilitate the programmatic and instantaneous settlement of commercial bank money for both on-chain and off-chain digital asset transactions. DiSH utilizes commercial bank deposits held on its ledger (DiSH Cash) to enable 24/7 movement of funds in multiple currencies and jurisdictions, offering both payment versus payment (PVP) and delivery versus payment (DVP) capabilities. This provides a “real cash leg” for foreign exchange and digital asset settlements.

DiSH Cash operates accounts at commercial banks, granting members immediate ownership of commercial bank deposits within the network and a mechanism for continuous fund movement. The platform can facilitate settlement directly on its ledger or serve as a notary for settlements in other networks and assets. The launch is based on a successful Proof of Concept (PoC) conducted with Digital Asset and a consortium of financial institutions using the Canton Network, where deposits were tokenized for use as a genuine cash component in transactions.

Daniel Maguire, group head of LSEG Markets and CEO of LCH Group, stated that “LSEG DiSH expands the tokenised cash and cash like solutions available to the market” and offers a novel real cash solution tokenized on the blockchain, utilizing funds held at commercial banks. The service aims to reduce settlement risk and integrate cash, securities, and digital assets across existing and new market infrastructures.

(Source：Finextra)