London Stock Exchange launches digital settlement platform: focuses on bank deposit tokenization, supports 24/7 real-time clearing

London Stock Exchange Group (LSEG) officially announced on 1/15 the launch of a brand-new “blockchain-friendly” digital settlement service called Digital Settlement House (Digital Settlement House). The core of this service is to convert traditional bank deposits into “tokenized cash” that can circulate on the blockchain 24 hours a day, enabling faster settlement of foreign exchange, digital assets, and even more financial transactions in the future.

LSEG launches Digital Settlement House to enable faster interoperability between traditional and on-chain finance

LSEG stated that the main feature of the new digital settlement service “Digital Settlement House” is its ability to facilitate real-time fund transfers between different payment systems, regardless of whether the other party uses blockchain technology or traditional financial systems, allowing seamless interoperability.

LSEG added that this service is designed to make capital movement in financial markets faster, simpler, and more aligned with the actual needs of digital assets and tokenized finance.

Bank deposits tokenized into 24/7 transferable cash

A key feature of this service is called DiSH Cash. The concept behind this feature is to convert deposits held in commercial banks into “tokenized cash” circulating on the blockchain.

Once converted, these tokenized cash assets can be transferred around the clock, 24/7, on the blockchain, and used for settling foreign exchange and digital asset transactions. LSEG emphasizes that this effectively moves money from the traditional banking system into the blockchain world for actual use. LSEG also mentioned that “tokenization” has become a popular topic in both traditional finance and the crypto space in recent years, so LSEG aims to ride this trend.

Interoperability between different banks, system designed for versatility

Bud Novin, head of post-trade and payment systems at LSEG, said that the most distinctive aspect of this system is its ability to enable participants’ bank accounts at different financial institutions to transact with each other using tokenized cash through this platform.

He described it as a universal system that, once rules are signed, can be used 24 hours a day, and stated that this design truly unlocks the long-discussed potential of digital assets.

Financial institutions accelerate adoption, blockchain settlement becomes mainstream

LSEG pointed out that the entire financial industry has been rapidly embracing blockchain in recent years because this technology can speed up asset transfers, simplify settlement processes, and reduce manual operations and reconciliation costs.

Many large banks and traders have been actively developing blockchain repurchase agreements, where securities and cash are tokenized simultaneously, allowing transactions to be completed instantly during the day without waiting for overnight clearing. This means the market no longer needs to hold as much idle cash waiting for settlement.

Cross-border testing completed, Canton Network connects multiple institutions

LSEG also revealed that this new system has already been used for actual trading. Recently, a consortium of large financial institutions used the bank-supported Canton Network and LSEG’s digital settlement service to complete cross-border, tokenized, intraday repurchase transactions.

Participants included electronic trading platform provider Tradeweb, major crypto and traditional market maker Cumberland DRW, and top global high-frequency market maker Virtu Financial. These firms used Canton Network and LSEG’s system to execute real-time tokenized securities and cash transactions.

LSEG’s blockchain strategy deepens since last year

The Digital Settlement House is just part of LSEG’s blockchain deployment.

As early as September 2025, LSEG launched a blockchain platform initially focused on private market transactions. Now, with the addition of the digital settlement service, it demonstrates that LSEG is gradually integrating blockchain into its core financial infrastructure.

This article London Stock Exchange launches digital settlement: focusing on bank deposit tokenization and supporting 24/7 real-time clearing was first published on Chain News ABMedia.