What Is LSEG’s Digital Settlement House?
London Stock Exchange Group has launched a new post-trade platform designed to settle transactions using tokenized commercial bank deposits on a continuous basis. The service, called the Digital Settlement House, or DiSH, allows payments-versus-payment and delivery-versus-payment settlement to occur around the clock across multiple currencies and networks.
According to LSEG, DiSH operates through accounts held at commercial banks, giving participants immediate ownership of tokenized deposits rather than exposure to a synthetic or proxy instrument. The platform also supports intraday liquidity management, borrowing and lending between participants, and synchronized settlement across asset classes.
The system sits within LSEG’s Post Trade Solutions division and can either settle transactions on its own ledger or act as a notary layer for settlements executed on connected external networks.
Investor Takeaway
DiSH brings commercial bank money on-chain in production form, offering financial institutions a way to reduce settlement frictions without relying on central bank digital currency.
Why Does Tokenized Commercial Bank Cash Matter?
Post-trade settlement remains one of the most capital-intensive parts of financial markets. Traditional settlement cycles often immobilize cash and securities for hours or days, increasing liquidity costs and counterparty exposure.
By tokenizing commercial bank deposits and settling them in real time, LSEG aims to keep assets usable throughout the trading day. DiSH records ownership of deposits directly on its ledger, allowing participants to transfer value instantly while maintaining claims on cash held at regulated commercial banks.
This structure creates a “true cash leg” for settlement, rather than relying on prefunded accounts or delayed reconciliation processes.
“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 utilising cash in multiple currencies held at commercial banks,” Daniel Maguire, Group Head of LSEG Markets and CEO of LCH Group, said in a statement.
How Did DiSH Move From Pilot to Live Platform?
The launch follows a completed proof of concept conducted with software firm Digital Asset and a consortium of financial institutions. That test ran on the Canton Network, a permissioned blockchain designed for regulated financial markets.
During the pilot, commercial bank deposits were tokenized and used as a settlement asset across different currencies and asset types. Ownership of deposits was recorded on the DiSH ledger, allowing participants to move cash instantly between accounts and complete settlement without waiting for batch processing.
LSEG said the live platform builds directly on those results. Assets that would normally sit idle during settlement windows can now remain available for reuse, whether as collateral, liquidity, or funding sources.
Investor Takeaway
Real-time settlement shortens exposure windows and frees up balance-sheet capacity, which matters most for high-volume institutions managing intraday liquidity.
Where Does DiSH Fit Into LSEG’s Broader Strategy?
DiSH is the latest step in LSEG’s push to modernize post-trade infrastructure using distributed ledger technology. In September 2025, the group launched a blockchain-based platform for private funds in partnership with Microsoft, targeting fund administration and post-trade services.
Unlike experimental tokenization projects, DiSH is positioned as production infrastructure designed to operate across multiple banks and jurisdictions. The focus on commercial bank money reflects a pragmatic route toward on-chain settlement, avoiding the policy and governance challenges associated with central bank digital currencies.
LSEG says settlement risk is reduced through shorter timelines, synchronized asset settlement, and higher collateral availability. For global markets, that combination addresses long-standing pain points in cross-currency and cross-asset settlement, particularly where time zones and legacy systems introduce delays.
What Comes Next for Tokenized Settlement?
The launch of DiSH places LSEG alongside a growing group of market infrastructure providers exploring tokenized cash as a foundation for next-generation settlement.
While adoption will depend on bank participation and regulatory acceptance, the platform signals that tokenization has moved beyond pilot programs into live market operations. If DiSH scales across asset classes and jurisdictions, it could change how institutions think about liquidity, collateral, and funding throughout the trading day.
Rather than waiting for settlement cycles to close, cash and securities could circulate continuously, aligning post-trade processes more closely with real-time markets. For now, DiSH marks a concrete shift from experimentation to deployment, placing tokenized commercial bank deposits at the center of institutional settlement infrastructure.