LSEG Launches New Blockchain-Based Digital Settlement Network

The London Stock Exchange Group (LSEG) has launched a new blockchain-based digital settlement platform to modernize fund movement across financial markets. The network, called Digital Settlement House (LSEG DiSH), is an open-source platform that enables instant settlement between independent networks, both on and off-chain. 

At the core of the platform is the DiSH ledger (DiSH Cash), which represents commercial bank deposits. The service will enable 24/7 instant movement of funds in multiple currencies and jurisdictions, including payment-versus-payment (PVP) and delivery-versus-payment (DVP), providing what LSEG describes as a “real cash leg” for global markets. 

Expanding the Tokenized Cash 

Daniel Maguire, LSEG Markets group head and CEO of LCH Group, says: “LSEG DiSH expands the tokenized cash and cash-like solutions available to the market, and for the first time, offers a real cash solution tokenized on the blockchain, utilizing cash in multiple currencies held at commercial banks. This innovative service will enable users to reduce settlement risk and integrate existing cash, securities, and digital assets across new and existing market infrastructure.”

Commercial banks will operate DiSH Cash, providing all members with instant ownership of deposits across the network. It enables seamless, continuous fund movement. The network will settle transactions directly in its own ledger or serve as a notary for settlement across other assets and networks. 

The launch marks a successful Proof of Concept (PoC) with Digital Asset and a consortium of financial institutions on the Canton Network. The network used tokenized bank deposits to complete live transactions.