The London Stock Exchange Group (LSEG) has unveiled plans to set up a blockchain-based digital assets business. Speaking to the Financial Times, LSEG’s head of capital markets Murray Roos reveals that if the project comes to fruition, LSEG will be the first large global exchange to offer “an end-to-end blockchain-powered ecosystem to investors”.

LSEG is “definitely not building anything around cryptoassets”, Murray Roos emphasises, but wants to use blockchain technology to improve the efficiency of trading and holding traditional assets in a regulated manner. He adds that the digital venture is not meant to become a competitor to LSEG’s traditional business. The exchange is considering setting it up as a separate legal entity.

“The ultimate goal is a global platform that allows participants in all jurisdictions to be able to interact with people in other jurisdictions completely abiding by rules, laws and regulations, potentially multiple jurisdictions simultaneously, which is something that hasn’t been possible in an analogue world,” he says.

PostTrade 360 Nordic 2024

The digital business is likely to start with a focus on private markets before being expanded to other assets once the operating model has been proven to work. LSEG is hopeful that the first market can go live next year, subject to regulatory approval.