The London Stock Exchange Group (LSEG) has announced that asset manager NewVest has joined its Digital Market. This move marks another step in LSEG’s push to expand tokenised and digital asset services for institutional investors. NewVest will list a series of tokenised investment products on LSEG’s Digital Market. These products use blockchain technology to represent ownership of funds and securities as digital tokens. Tokenisation can increase trading speed, improve settlement efficiency, and expand investor access across time zones.
LSEG launched the Digital Market to offer regulated trading, custody, and secondary market liquidity for tokenised assets. Since its 2023 introduction, the market has onboarded multiple issuers and custody partners. LSEG reports the Digital Market processed trial settlements within minutes during pilot phases, compared with traditional settlement cycles of two to three days.
NewVest is a UK-based asset manager with £1.2 billion in assets under management (AUM). The firm said tokenisation aligns with its strategy to broaden investor access and lower operational costs. NewVest’s CEO noted the partnership will support institutional clients seeking faster settlement and clearer asset provenance. Regulation remains central: LSEG operates the Digital Market within existing UK financial rules and works closely with the Financial Conduct Authority. LSEG emphasized strong custody arrangements and compliance checks for issuers and intermediaries.
Market analysts say onboarding reputable managers like NewVest boosts confidence and could attract more institutional flows into tokenised instruments. Challenges remain—market liquidity, interoperability, and investor education—but the addition of NewVest signals growing adoption.
FAQs [Frequently Asked Questions]
1. What is tokenisation?
Tokenisation converts ownership of assets into digital tokens on a blockchain, enabling faster settlement, fractional ownership, and broader investor access while maintaining regulatory controls.
2. Why does NewVest join LSEG Digital Market?
NewVest joins to offer faster settlements, lower costs, and wider access for clients using tokenised products, leveraging LSEG’s regulated trading and custody infrastructure.
3. Is investor protection ensured?
Yes. LSEG runs the Digital Market under UK rules, with custody safeguards, compliance checks, and oversight by regulators like the Financial Conduct Authority.