Olaf Ransome examines LSEG's Digital Settlement House -- how DiSH Cash works, what it means for intraday liquidity management in wholesale banking, and whether tokenised commercial bank deposits create more questions than they answer.
Post publishing the original article, I discovered some facts. Underneath the construction is not LSEG per se but a trust, i.e. something bankruptcy remote from LSEG, which is a good thing. In practical processing terms, the Trust is like a correspondent bank. Any holders of long-term balances are not a priori interested or even in the know on where the underlying funds are held. So any movements from the DiSH world back to the fiat world are instructed to the Trust and executed by the Trust.
