London Stock Exchange Group (LSEG) has announced plans to develop the LSEG Digital Securities Depository (DSD), an on-chain settlement capability designed for institutional market participants. Scheduled for a 2026 launch subject to regulatory approval, the DSD will function as a fully interoperable infrastructure. It aims to bridge traditional and digital markets by supporting multiple blockchains and ensuring seamless interaction between existing settlement platforms and new digital frameworks.
The DSD will build upon LSEG’s existing Digital Markets Infrastructure (DMI), a Microsoft Azure-powered platform currently used for fund tokenisation. The new capability is intended to enhance collateral management and improve liquidity access across various asset classes, including equities, fixed income, and private markets. This move aligns with LSEG’s long-term vision of a financial ecosystem where the majority of securities are tokenised to increase transparency and operational efficiency.
To support the transition, LSEG is establishing a strategic partner group to integrate market feedback into the development process. This collaboration seeks to scale the infrastructure and facilitate the trading and settlement of both digitally native assets and digital representations of traditional securities. Members of this partnership group will be confirmed at a later date.
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