London Stock Exchange Group (LSEG) has announced the launch of a new digital settlement service, the Digital Settlement House (LSEG DiSH). This development marks a significant step toward enabling real-time, around-the-clock settlement across both traditional and blockchain-based financial networks.
Understanding LSEG DiSH
LSEG DiSH is designed as an open-access platform. It enables programmatic and instantaneous settlement between independent payment networks, regardless of whether they are on-chain or off-chain.
At the core of this service is DiSH Cash. This is a ledger-enabled commercial bank money solution that facilitates the 24/7 movement of commercial bank deposits across multiple currencies and jurisdictions.
The system is built to support both payment-versus-payment (PvP) and delivery-versus-payment (DvP). LSEG describes this as providing a “real cash leg” for foreign exchange and digital asset transactions.
Through DiSH Cash, participants maintain accounts at commercial banks that are connected to the DiSH network. The ownership of these deposits is recorded on the DiSH ledger.
This structure grants users instant ownership of commercial bank money and the ability to move funds at any time. This contrasts with the limitations of traditional settlement windows.
LSEG DiSH has the capability to settle transactions directly on its own ledger. Alternatively, it can function as a notary, coordinating settlement across external networks and various asset types.
Addressing Inefficiencies and Optimizing Liquidity
The platform aims to tackle long-standing inefficiencies within post-trade infrastructure. It seeks to achieve this by unlocking “trapped” assets and enabling the instantaneous use of cash, securities, and digital assets.
LSEG also stated that the service will assist firms in optimizing their liquidity. This will be facilitated through new intraday borrowing and lending tools. Furthermore, it will reduce settlement risk by synchronizing settlement and shortening settlement timelines.
Proof of Concept and Future Operations
The launch follows a successful proof of concept. This trial was conducted with Digital Asset and a consortium of major financial institutions on the Canton Network. During this trial, commercial bank deposits were tokenized on the network and utilized as a true cash leg for transactions involving multiple assets and currencies.
LSEG DiSH will operate under LSEG’s Post Trade Solutions business. It will utilize a standardized rulebook and account framework to support a broad member base.
Strategic Importance
Daniel Maguire, Group Head of LSEG Markets and CEO of LCH Group, commented on the service. He noted that it expands tokenized cash solutions by offering, for the first time, blockchain-based settlement backed by real commercial bank money held in multiple currencies.
This initiative underscores LSEG’s commitment to modernizing market infrastructure. It achieves this by bridging traditional finance and digital asset ecosystems under a unified settlement framework.