The London Stock Exchange Group (LSEG) has officially entered the digital asset space with the launch of its new Digital Markets Infrastructure (DMI) platform. The platform, developed in collaboration with Microsoft, aims to revolutionise the private funds market by leveraging blockchain technology to streamline the entire asset lifecycle.
The DMI platform will support tokenisation, issuance, distribution, and post-trade servicing for a wide range of asset classes, with private funds being the first to be onboarded. This move is part of LSEG’s broader strategy to support clients across the entire funding continuum, from private to public markets.The platform is built on Microsoft Azure and is designed to be interoperable with both existing distributed ledger technologies and traditional financial infrastructure. A key feature of the DMI platform is its integration with LSEG’s Workspace, which will allow professional investors to discover and analyse private market opportunities within their existing workflows.
“At LSEG we are committed to significantly improving access to private markets, by streamlining workflows, enhancing distribution, and enabling liquidity,” said Darko Hajdukovic, Head of Digital Markets Infrastructure at LSEG. “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.”
The first transaction on the platform was a primary fundraise for MembersCap’s MCM Fund 1, with Archax acting as the nominee for a major Web3 foundation. EJF Capital has also been onboarded as an early adopter and will make select funds available on the platform.
The launch of LSEG’s DMI platform is a significant development for the digital asset space, as it signals a growing acceptance of blockchain technology by mainstream financial institutions. The platform has the potential to increase efficiency, transparency, and liquidity in the private funds market, which has traditionally been characterised by manual processes and limited accessibility.
LSEG plans to expand the DMI platform to other asset classes in the future, although a specific timeline has not yet been announced. This move is part of a broader trend of financial institutions exploring the potential of blockchain technology to transform capital markets.
Bill Borden, Corporate Vice President, Worldwide Financial Services, Microsoft, commented: “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.”
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