London Stock Exchange Group to Launch Blockchain Settlement Service for Institutional Investors

The London Stock Exchange Group (LSEG) announced plans to introduce an on-chain settlement service for institutional investors, named the LSEG Digital Securities Depository. According to PANews, this platform aims to bridge traditional securities markets with blockchain networks, facilitating the trading and settlement of tokenized bonds, stocks, and private market assets while maintaining compatibility with existing infrastructure. The system will support multiple blockchain networks, with an initial delivery target set for 2026, pending regulatory approval. LSEG has already been operating a blockchain platform for private equity funds on Microsoft Azure, and this new system represents a further expansion of its digital asset strategy. The company plans to form a strategic partnership group to gather market feedback during development, aiming to create an interconnected ecosystem across time zones that supports various payment methods for both digital and traditional markets. Major UK financial institutions such as Barclays, Lloyds, NatWest Markets, Standard Chartered, and Brookfield have expressed their support for the initiative.