LSEG Launches Digital Settlement House

LSEG has launched an open-access platform enabling programmatic and instantaneous settlement between independent payment networks, both on- and off-chain through its Post Trade Solutions business.

The digital settlement house is dubbed LSEG DiSH and it will enable 24/7 instantaneous movement of commercial bank money in multiple currencies and jurisdictions providing a real cash leg for FX and digital asset transactions and settlements.

The service will allow market participants to conduct PvP or DvP and settlements using any asset, orchestrating payments on any connected network, digital and traditional. By using LSEG DiSH, the firm says users can unlock trapped assets, enabling instantaneous use of cash and securities, as well as digital assets 24/7. The new tool will also allow for better liquidity optimisation due to intraday borrowing and lending.

The launch comes after a successful proof of concept (PoC) in collaboration with Digital Asset and a consortium of financial institutions, completing transactions on the Canton Network. The PoC leveraged commercial bank deposits at banks, executed across multiple assets and currencies, using tokenised deposits on the Canton Network for use as the true cash leg of transactions.

“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.” Says Daniel Maguire, group head, LSEG Markets and CEO, LCH Group.