The London Stock Exchange (LSEG) has launched a blockchain-friendly settlement service, enabling the movement of commercial bank money for digital asset transactions.
Editorial
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The new Digital Settlement House (LSEG DiSH) is an open-access platform which enables programmatic and instantaneous settlement between independent payment networks, both on and off chain. Through commercial bank deposits held on the DiSH ledger (DiSH Cash), the service will enable the 24/7 instantaneous movement of commercial bank money in multiple currencies and jurisdictions, PVP and DVP, providing a real cash leg for FX and digital asset transactions and settlements.
DiSH Cash will operate accounts at commercial banks, providing members with instant ownership of a commercial bank deposit at any bank within the network, and a mechanism for the 24/7 movement of commercial bank money. LSEG DiSH can facilitate settlement on its own ledger, or act as notary for settlement in other networks and assets.
The launch follows a successful Proof of Concept (PoC) in collaboration with Digital Asset and a consortium of financial institutions, completing transactions on the Canton Network. Deposits were tokenised on the Canton Network for use as a true cash leg of the transactions.
Daniel Maguire, group head, LSEG Markets and CEO, LCH Group, says: “LSEG DiSH expands the tokenised cash and cash like solutions available to the market, and for the first time, offers a real cash solution tokenised on the blockchain utilising 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.”