First global exchange to embrace blockchain infrastructure
The London Stock Exchange Group (LSEG) has officially launched a blockchain-powered platform for private funds, making it the first global exchange to introduce such infrastructure. The new system, called Digital Markets Infrastructure (DMI), marks a milestone in the convergence of traditional finance (TradFi) and digital assets.
What is the Digital Markets Infrastructure (DMI)?
The platform is designed to support the entire lifecycle of digital assets — from issuance and tokenization to trading and post-settlement. Built on Microsoft Azure, it was developed in collaboration with Microsoft, highlighting the tech giant’s growing role in financial innovation.
LSEG emphasized that the goal is interoperability between distributed ledger technology (DLT) and traditional financial systems, creating a regulated environment where both digitally native and conventional assets can coexist.
Private funds debut as the first asset class
The first live asset class on the DMI is private funds, an area historically difficult for investors to access. Through the platform, private funds become discoverable via Workspace, enabling general partners to interact with professional investors in a seamless and transparent way.
- MembersCap, a capital management firm, and Archax, a U.K. Financial Conduct Authority-regulated digital securities exchange, were the first participants.
- MembersCap executed the debut transaction, with Archax acting as nominee for the Cardano Foundation.
This represents a real-world application of tokenized assets, giving investors broader opportunities while increasing liquidity in markets that were traditionally limited to institutional participants.
Microsoft and LSEG: reshaping global finance
Microsoft views the partnership as transformative. Bill Borden, Corporate VP of Worldwide Financial Services, described it as:
“Together, we’re reshaping the future of global finance to empower our customers to unlock new opportunities and drive meaningful change.”
LSEG’s Head of Digital Markets Infrastructure, Darko Hajdukovic, echoed this sentiment, noting that today’s private market processes are ripe for innovation. By leveraging blockchain, LSEG aims to improve capital access, efficiency, and transparency, especially in private markets.
The launch comes at a time when real-world assets (RWAs) are gaining momentum across financial markets. Other global financial giants, including JPMorgan, have been experimenting with blockchain-powered settlement and tokenized assets.
Industry experts suggest that moves like LSEG’s could accelerate the convergence of TradFi and DeFi much sooner than anticipated. According to Nelli Zaltsman of JPMorgan’s Kinexys, regulatory clarity will be key to unlocking broader adoption.
The London Stock Exchange’s blockchain platform represents a historic step in modernizing global markets. By bringing private funds onto the blockchain, LSEG is not only democratizing access but also setting the stage for tokenization of more asset classes.
If successful, the initiative could serve as a blueprint for other exchanges worldwide, bridging traditional markets with the growing world of decentralized finance.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.