LSEG has announced plans to develop an on-chain settlement solution, the LSEG Digital Securities Depository (DSD).
The DSD will serve institutional participants and connect traditional and digital markets.
It will support multiple chains and allow interaction between existing settlement platforms and emerging digital infrastructures. The first deliverable is scheduled for 2026, subject to regulatory approval.
LSEG currently operates a DLT-based Digital Markets Infrastructure (DMI), powered by Microsoft Azure. The DMI has enabled tokenisation and broader fund distribution.
The new DSD capability will improve collateral management and provide access to liquidity across fixed income, equities, and private markets.
LSEG is preparing for a future in which most bonds on exchanges, and eventually most securities, are tokenised.
This will give market participants greater transparency and improve operational efficiency.
As part of the design and implementation process, LSEG will establish a strategic partner group to incorporate market feedback and support scale, enabling issuance, settlement, and trading of both digitally native and digitally represented traditional securities. Participants in this programme will be announced in due course.
Daniel Maguire, Group Head of Markets at LSEG, said:
“We look forward to welcoming new strategic partners as we build LSEG Digital Markets Infrastructure, a seamless ecosystem in which participants can move effortlessly between digital and traditional markets, connected across time zones and choice of payment options.”
Featured image credit: Edited by Fintech News Switzerland, based on image by thanyakij-12 via Freepik
