The London Stock Exchange Group has launched a blockchain-based platform for private funds, completing its first transaction as part of a wider push to modernise capital markets.
Built in collaboration with Microsoft and powered by Azure, the Digital Markets Infrastructure (DMI) platform uses distributed ledger technology to streamline the entire lifecycle of private fund assets – from issuance and tokenisation through to settlement and servicing.
LSEG said the system is designed to be interoperable with both existing blockchain networks and traditional market infrastructure, while also integrating with the group’s own products such as Workspace.
Private funds will be the first asset class supported, with other markets to follow.
The initiative is intended to broaden distribution, improve capital-raising options and enhance liquidity within a regulated framework.
The launch saw investment manager MembersCap and crypto exchange firm Archax onboarded as the first clients.
MembersCap executed a primary fundraise on the platform, with Archax acting on behalf of a major Web3 foundation. US-based asset manager EJF Capital has also joined as an early adopter, with several of its funds to be listed shortly.
Dr Darko Hajdukovic, head of digital markets infrastructure at LSEG, said the project aimed to address inefficiencies in private markets.
“We are committed to significantly improving access by streamlining workflows, enhancing distribution and enabling liquidity,” he said.
“The onboarding of our first clients and this first transaction are significant milestones, demonstrating the appetite for an end-to-end, interoperable, regulated financial markets DLT infrastructure.”
Bill Borden, corporate vice-president for worldwide financial services at Microsoft, said: “Together, we’re reshaping the future of global finance to empower our customers to unlock new opportunities and drive meaningful change.”
