The London Stock Exchange Group (LSEG) will build and deliver a Digital Securities Depository (DSD), an on-chain infrastructure connecting existing settlement platforms and emerging digital infrastructures.
LSEG said the fully interoperable infrastructure will drive greater collateral management efficiencies and facilitate institutional access to liquidity for a broad range of assets, including fixed income, equities, and private markets.
The first deliverable is due in 2026, subject to regulatory approval. A strategic partner group is forming to ensure market feedback is incorporated into the build, and to unlock scale and enable issuance, settlement and trading in both digitally native and digital representation of traditional securities. Participants of this programme will be announced in due course.
Angus Fletcher, global head of Digital Solutions, State Street, which unveiled its digital asset platform in January, said: “We are pleased to engage with LSEG as it develops the Digital Securities Depository, and we look forward to collaborating to assess models that support institutional adoption while meeting the operational and regulatory expectations of our clients.”
LSEG already operates a DLT-based Digital Markets Infrastructure (DMI), powered by Microsoft Azure, which has enabled tokenisation and broader distribution of funds.
