London Stock Exchange’s DMI and the Role of Regulated Stablecoins in Tokenized Markets

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The launch of the DMI (Digital Markets Infrastructure) by the LSEG (London Stock Exchange) is not only a step toward innovation but also a notable development for market infrastructure, which has long faced multi-day post-trade processes.

Now, DLT can significantly reduce post-trade timelines.

In some pilots, faster or near-real-time processing has been demonstrated. Asset management, tokenized fund issuance, distribution and post-trade can be orchestrated on DLT within a regulated framework.

However, if DMI represents the transition toward asset tokenization, the next logical step is the tokenization of money itself.

A fully digital market cannot function if its settlement layer remains analog. This is where a new chapter begins – the era of regulated stablecoins.

From tokenizing assets to tokenizing money

By 2025, the digitalization of capital markets has become a tangible reality. Leading exchanges are launching infrastructures that enable real-time trading of tokenized assets.

However, every transaction – even on blockchain – requires a settlement asset equivalent to fiat money.

Bank transfers are too slow, while traditional cryptocurrencies are too volatile and non-compliant for regulated environments.

The answer lies in regulated stablecoins – digital equivalents of national currencies, issued under financial supervision and backed by real-world reserves.

Why regulated stablecoins are the core of the new financial architecture

DMI operates on a permissioned blockchain, where every transaction passes through strict compliance layers (KYC, AML, licensing).

In such an environment, tokens lacking clear legal status and compliance controls are typically excluded from permissioned environments.

The system needs a digital settlement instrument that satisfies both blockchain standards and regulatory requirements. This is where regulated stablecoins step in.

Regulated stablecoins function as the connective tissue between tokenized assets and the fiat world – providing a compliant, programmable equivalent of money that institutions can rely on.

The market for such infrastructure is already taking shape, driven by companies that blend financial regulation with Web 3.0 flexibility.

Globally, stablecoins are evolving from niche crypto assets into the default settlement layer for tokenized markets, used not only in trading but also in fund operations, real estate tokenization and interbank liquidity management.

This shift reflects a broader institutional trend – the replacement of traditional clearing systems with programmable, regulator-approved digital equivalents.

Multiple providers offer issuance and lifecycle-management tools with compliance and issuer-control features.

Finance 3.0 – When money becomes programmable

The combination of tokenized assets and regulated stablecoins forms a self-contained digital financial ecosystem.

Issuance, trading and settlement occur within a unified legal and technological environment, reducing operational frictions between traditional and digital processes.

This convergence marks the beginning of real-time finance – where liquidity flows continuously and financial operations can reduce reliance on manual cut-offs and traditional operating windows where permitted.

In this context, regulated stablecoins are a programmable form of money that can interoperate with regulated market infrastructure, subject to policy and supervisory outcomes.

Yaroslav Kalynychenko is the CMO at Generis Web 3.0 Agency and an expert in promoting crypto, fintech and innovative digital solutions.

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