LSEG Launches 24/7 Tokenized Deposit Settlement Platform

The London Stock Exchange Group (LSEG) has launched a new digital settlement platform called LSEG Digital Settlement House (DiSH) to enable 24/7 settlement of tokenized commercial bank deposits. The platform allows real-time transactions across traditional and blockchain-based networks, offering a synchronized and instant settlement process for multiple currencies and jurisdictions.

LSEG DiSH operates through a ledger-based system called DiSH Cash, which records tokenized commercial bank deposits. This system allows market participants to conduct payment-versus-payment (PvP) and delivery-versus-payment (DvP) settlements, offering a real cash leg for foreign exchange and digital asset transactions.

The platform was tested in a proof of concept with a consortium of financial institutions, which executed transactions on the Canton Network. This trial demonstrated the platform's ability to handle cross-currency and multi-asset transactions, with ownership of deposits recorded on the DiSH ledger.

Why Did This Happen?

LSEG's move into tokenized settlement is part of a broader strategy to integrate blockchain technology into post-trade solutions. The company aims to address long-standing issues in traditional settlement processes, where cash and assets are often immobilized due to slow processes and disconnected systems.

The launch of DiSH follows a successful proof of concept conducted with Digital Asset and a group of major financial institutions. The tests demonstrated the platform's ability to execute instant transfers of tokenized commercial bank deposits, providing a real cash leg for transactions.

Daniel Maguire, Group Head of LSEG Markets and CEO of LCH Group, stated that DiSH expands the tokenized cash and cash-like solutions available to the market, offering a real cash solution tokenized on the blockchain using cash in multiple currencies held at commercial banks.

How Did Markets React?

Market participants are expected to benefit from the platform's ability to reduce settlement risk through shorter settlement timelines and increased collateral availability. The platform allows for intraday borrowing and lending, improving liquidity management.

The launch of DiSH is part of LSEG's wider Digital Markets Infrastructure initiative. The company previously launched a blockchain-based platform for private funds in September 2025, furthering its digital asset strategy.

Analysts view LSEG's entry into this space as a validation of blockchain's utility in wholesale finance. The platform directly addresses interoperability and finality issues that have hindered broader digital asset adoption.

What Are Analysts Watching Next?

The success of LSEG DiSH will depend on widespread institutional adoption. The platform is designed for institutional clients, including banks and asset managers, and is not intended for retail users.

Looking ahead, LSEG has outlined a phased roadmap for the platform. The initial phase focuses on onboarding select banking partners and establishing core currency corridors. Future phases will expand digital asset support and introduce more advanced programmable finance tools.

Experts are also watching how the platform integrates with central bank digital currencies (CBDCs) as they develop. This forward-looking approach ensures the platform remains relevant amid rapid monetary innovation.