LSEG Plans On Chain Settlement Platform As Tokenisation Pushes Into Market Infrastructure
The infrastructure side of capital markets is moving again, and not just in theory. London Stock Exchange Group has announced plans for a blockchain compatible on chain settlement platform, positioning it as a bridge between traditional and digital securities markets.
For securities finance, the key question is not whether tokenisation is exciting. The key question is whether settlement systems evolve in ways that change collateral mobility, settlement timing, and the operational rails that support lending and borrowing.
LSEG has framed the initiative around interoperability with existing infrastructure and a phased rollout in 2026 subject to regulatory approval. That suggests a pragmatic approach rather than a full rip and replace.
If this direction accelerates across major venues, it could eventually influence how collateral is posted, how ownership and control are recorded, and how quickly assets can move across venues. Those are not small details for stock lending and stock backed credit. They are the mechanics that decide what is possible in stressed markets.
This is not a signal that everything changes tomorrow. It is a signal that the post trade layer is becoming an active competitive arena again. And when infrastructure starts competing, market structure usually follows.
