London, Feb 13, 2026, 08:09 GMT — Regular session
- LSEG jumped early after the group unveiled plans for an on-chain settlement service.
- Banks are lining up to help shape the project, which is aiming at tokenised bonds, equities, and private market assets.
- Investors await a regulatory green light, plus the group’s results update set for Feb. 26.
London Stock Exchange Group (LSEG) shares climbed 1.25% to 7,614 pence in early Friday action, following a previous close at 7,520 pence. (Investing)
This isn’t just talk anymore: tokenisation—converting classic securities into digital tokens for blockchain trading—has moved to real infrastructure budgets. For exchanges and data firms, it’s another shot at turning “plumbing” from a cost center back into something that can actually drive growth.
LSEG on Thursday laid out plans for its LSEG Digital Securities Depository, aiming to launch an on-chain settlement platform tailored for institutional investors and connecting the dots between traditional and digital securities markets. “As tokenisation continues to mature, interoperability between traditional and digital market infrastructure will be critical,” said Angus Fletcher, global head of digital solutions at State Street. (Reuters)
The group is banking on the UK’s Digital Securities Sandbox framework, with LSEG targeting a launch for its own Digital Securities Sandbox (DSD) later this year if regulators sign off, Ledger Insights reports. Daniel Maguire, LSEG’s group head of markets, described the effort as “a seamless ecosystem” that will let participants transition between digital and traditional markets. (Ledger Insights)
On-chain settlement means the final swap of cash and securities gets logged straight onto a blockchain ledger, not routed through old-school post-trade systems. Proponents say this could slash settlement risk and make things move faster, though it brings regulators right into the thick of the design.
LSEG keeps pushing the case for interoperability, aiming to bolt new tech onto existing settlement systems instead of tearing everything down. That’s the challenge. The group also points out it’s running a blockchain platform for private funds, built on Microsoft Azure.
This move comes as LSEG works to shore up confidence following a tough period for data-and-software stocks, with investors worried that fresh AI offerings might squeeze both pricing and usage. Activist investor Elliott Management has also turned up the heat on LSEG, having taken a position in the company, according to Reuters.
The risks are clear enough. Regulatory approvals might take time, and institutions aren’t likely to rush in if the technology’s early offerings don’t deliver on cost or legal clarity for settlement finality.
Investors want to see which firms make the partner list, which assets hit the block first, and if this project can grow past the pilot stage without turning messy. Clues about timeframes, spending, or long-term revenue—all of it could shift the conversation.
LSEG’s next major event: the FY 2025 preliminary results webcast, set for Feb. 26 at 10:00 a.m. UK time. CEO David Schwimmer and CFO Michel-Alain Proch are slated to lead the call. (Lseg)
