LSEG announces the launch of a new digital settlement service, Digital Settlement House (LSEG DiSH), an open-access platform which enables programmatic and instantaneous settlement between independent payment networks, both on and off chain. Through commercial bank deposits held on the DiSH ledger (DiSH Cash), the service will enable the 24/7 instantaneous movement of commercial bank money in multiple currencies and jurisdictions, PVP and DVP, providing a real cash leg for FX and digital asset transactions and settlements.

With LSEG DiSH, market participants will be able to conduct PvP or DvP and settlements using any asset, orchestrating payments on any connected network, digital and traditional. DiSH Cash, LSEG DiSH’s ledger enabled commercial bank money solution, will operate accounts at commercial banks, providing members with instant ownership of a commercial bank deposit at any bank within the LSEG DiSH network, and a mechanism for the 24/7 movement of commercial bank money. LSEG DiSH can facilitate settlement on its own ledger, or act as notary to facilitate settlement in other networks and assets.

By using LSEG DiSH, users can unlock trapped assets, enabling instantaneous use of cash, securities and digital assets 24/7. They will also be able to optimise liquidity through new tools that enable intraday borrowing and lending to better manage assets and obligations. The service also enables users to reduce settlement risk through reduced settlement timelines, synchronised settlement, and increased collateral availability.

The launch follows a successful Proof of Concept (PoC) in collaboration with Digital Asset and a consortium of leading financial institutions, completing transactions on the Canton Network. Executed across multiple assets and currencies, the transactions leveraged commercial bank deposits at leading commercial banks, with ownership recorded on the LSEG DiSH ledger, enabling the PoC participants to instantaneously transfer commercial bank deposits. The deposits were tokenised on the Canton Network for use as a true cash leg of the transactions.

LSEG DiSH will operate through LSEG’s Post Trade Solutions business, utilising a trusted rulebook framework and account structure, supporting a broad network of members across multiple commercial banks and currencies. Instantaneous settlement of cash means that LSEG DiSH can offer dynamic management of intraday liquidity and funding, as well as 24/7 management of settlements and margin.

Daniel Maguire, Group Head, LSEG Markets and CEO, LCH Group, said: “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. This innovative service will enable users to reduce settlement risk, and integrate existing cash, securities and digital assets across new and existing market infrastructure. We look forward to developing this service in partnership with the market.”

Source: LSEG