The London Stock Exchange Group has unveiled its new Digital Markets Infrastructure platform, a blockchain-based system designed to modernize how private funds are issued, traded, and serviced. Developed in collaboration with Microsoft and hosted on Microsoft Azure, the platform aims to bring greater efficiency, transparency, and scalability to the entire asset lifecycle from initial issuance and tokenization to distribution, settlement, and ongoing servicing.
This launch marks a significant step in LSEG’s broader strategy to become the first global exchange group to support clients across the full funding continuum. While private funds are the first asset class to go live on the platform, LSEG plans to expand its use to other asset classes in the future.
The system is designed to be open and interoperable, meaning it can work alongside both existing distributed ledger technology solutions and traditional financial systems.
By integrating with LSEG’s Workspace platform, the DMI system allows private funds to be visible to professional investors as part of their daily workflow. This makes it easier for general partners to connect with a wider pool of potential investors, while giving those investors streamlined access to opportunities that have historically been difficult to discover and evaluate.
The platform’s first clients include MembersCap and Archax. The inaugural transaction saw MembersCap, acting as the general partner of MCM Fund 1, complete a primary fundraise, with Archax serving as the nominee for a major Web3 foundation. EJF Capital has also joined as an early adopter, with several of its funds expected to be available on the platform soon.
LSEG’s use of Microsoft Azure ensures that the platform benefits from high levels of security, resilience, and scalability. The design supports innovation while maintaining the regulatory and operational standards required in global financial markets. By connecting participants from across the international investment community, the DMI platform aims to broaden distribution, increase liquidity, and foster a trusted environment for capital raising and asset servicing.
KEY QUOTES:
“There are many processes in private markets today that can be improved. At LSEG we are committed to significantly improving access to private markets, by streamlining workflows, enhancing distribution, and enabling liquidity. We intend to do this by continually working with all stakeholders to enhance efficiencies and connectivity for both digitally-native and traditional assets. 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. LSEG’s position as a convener of markets can bring significant scale to digital assets and effect real change.”
Dr. Darko Hajdukovic, Head of Digital Markets Infrastructure, LSEG
“Microsoft’s collaboration with LSEG on its Digital Markets Infrastructure (DMI) is a powerful example of the innovation driving our strategic partnership. Together, we’re reshaping the future of global finance to empower our customers to unlock new opportunities and drive meaningful change.”
Bill Borden, Corporate Vice President, Worldwide Financial Services, Microsoft
