London Stock Exchange Group DiSH Launches 24/7 Onchain Cash Settlement
The London Stock Exchange Group has launched a new digital settlement service to bring commercial bank funds to blockchain railways.
The service, called Digital Settlement House (DSH), enables fast settlements across both blockchain-based and traditional payment networks, operating around the clock in multiple currencies and jurisdictions, according to Thursday's announcement.
The core of the platform is DiSH Cash, a ledger-based commercial bank deposit. Instead of relying on stablecoins, the system uses claims on actual bank deposits, providing what LSEG describes as a “real money leg” for foreign exchange, securities and digital asset transactions.
At LSEG DiSH market participants can conduct PvP. [payment-versus-payment] or DvP [delivery-versus-payment] And settlements using any asset, coordinating payments on any connected network, digital and traditional,” LSEG said.
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LSEG's DiSH aims to accelerate settlements.
The LSEG platform is designed to fix long-standing problems in post-trade settlements, where funds and assets are often locked up for hours or even days due to slow processes and fragmented systems.
“The service allows users to reduce settlement risk by reducing settlement time, increasing settlement agreement and collateral provision,” the global financial market infrastructure and data provider said.
The launch follows a successful proof of concept with a group of leading financial institutions on the Digital Asset and Canton network. During those tests, trades were completed in different assets and currencies, using commercial bank deposits as the currency side of each transaction. Ownership of these deposits is recorded in the DiSH registry.
Related: Stablecoin Platform VelaFi Expects $20M to Scale Cross-Border Settlement Rails
Stablecoins move to market infrastructure
LSEG's move comes as stablecoins become part of the core infrastructure of global finance, moving beyond their roots, according to a new outlook report from Moody's. The report predicts that stablecoin will generate $9 trillion in settlement volume by 2025, an 87% increase from last year, driven by onchain activity rather than traditional bank-to-bank transfers.
Moody's fiat-backed stablecoins and tokenized bank deposits are used as “digital cash” for liquidity management, collateral activity and settlement of an additional tokenized financial system.
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