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London Stock Exchange Group (LSEG) has announced the launch of a new settlement platform based on blockchain technology that allows financial institutions to settle payments and assets almost instantly and around the clock using real funds deposited with commercial banks.
The platform, called Digital Clearing House (LSEG DiSH), enables high-speed payment-to-pay (PvP) and delivery-to-pay (DvP) transactions by recording bank deposits on a special digital ledger called “DiSH Cash.”
This gives participants immediate ownership and the ability to transfer funds and settle transactions directly.
LSEG DiSH is designed to act as a link between traditional financial systems and digital asset networks, allowing payments and asset settlements to be coordinated across different infrastructures, whether blockchain-based or traditional systems.
London Stock Exchange Group stated that this mechanism will help shorten the settlement cycle, reduce counterparty risks, and improve the efficiency of the use of liquidity and guarantees within the balance sheets of financial institutions.
Daniel Maguire, director of LSEG Markets, said that the platform provides for the first time a real cash solution tokenized on the blockchain and supported by multi-currency balances from commercial banks, stressing that the service will help integrate cash, securities and digital assets into a more efficient single settlement system.
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