Key takeaways
- LSEG has launched a blockchain-based settlement platform named Digital Settlement House (DiSH).
- The service aims to minimize settlement risk, improve liquidity management and enable round-the-clock management of assets and margins.
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The London Stock Exchange Group (LSEG) has deployed a blockchain-based settlement platform that allows financial institutions to transfer real money from commercial banks and settle assets instantly, 24/7, across traditional and digital asset networks.
The service, Digital Settlement House (LSEG DiSH), enables near-instant payment-on-payment (PvP) and delivery-on-payment (DvP) settlement using commercial bank deposits.
These deposits are recorded in the DiSH ledger (DiSH Cash), giving participants immediate ownership and transferability.
The platform acts as a bridge between on-chain and off-chain systems, enabling assets and payments to be orchestrated across multiple independent networks, whether blockchain-based or conventional financial infrastructure.
“LSEG DiSH expands on tokenized and cash-like solutions available in the market and, for the first time, offers a tokenized real cash solution on the blockchain using cash in multiple currencies held in commercial banks,” said Daniel Maguire, Head of LSEG Markets Group and CEO of LCH Group.
Instant, synchronized settlement shortens settlement times, reduces counterparty risk and unlocks assets that would otherwise be stranded, as noted by LSEG. This also increases the availability of collateral and improves balance sheet efficiency.
“This innovative service will enable users to reduce settlement risk and integrate existing cash, securities and digital assets into new and existing market infrastructures. We look forward to developing this service in partnership with the market,” noted Maguire.
