LSEG to build blockchain-friendly digital settlement platform
LSEG plans to launch a digital securities depository in 2026, connecting traditional and blockchain-based markets.Summary
London Stock Exchange Group (LSEG) announced plans on Thursday to build an on-chain settlement service, the LSEG Digital Securities Depository, aimed at institutional investors. This platform will facilitate the trading and settlement of tokenized bonds, equities, and private market assets across various blockchain networks, while ensuring compatibility with existing settlement systems.
The move comes amid pressure from activist investor Elliott Management, seeking improvements after LSEG’s shares experienced a significant decline. The first phase of the system is anticipated in 2026, pending regulatory approval, and LSEG will collaborate with a strategic partner group to incorporate market feedback.
Industry leaders, including Angus Fletcher of State Street, emphasize the importance of interoperability as tokenization evolves. Major British banks like Barclays, Lloyds, NatWest Markets, Standard Chartered, and Brookfield have expressed support for LSEG’s initiative, which aims to create a seamless ecosystem for navigating between digital and traditional markets.
(Source：Channel Newsasia)