The London Stock Exchange Group (LSEG) has completed its first blockchain-based fundraising through its newly launched Digital Markets Infrastructure (DMI) platform, as per its official press release. The platform, developed in partnership with Microsoft, was first used by reinsurance asset manager MembersCap to raise capital for its latest private fund. This announcement means that LSEG becomes the first international stock exchange to incorporate blockchain technology into the issuance, trading, and settlement stages of market transactions.
LSEG’s Blockchain Platform to Streamline Private Fund Transactions
With the launch of its DMI platform, the LSEG says it can modernise capital markets by improving efficiency, lowering costs, and broadening access to investors. The initiative will start with private funds as the first asset class, but the exchange intends to expand the offering to other markets in the future.
Darko Hajdukovic, Head of Digital Markets Infrastructure at LSEG, highlighted the inefficiencies in the current market processes. “Current processes are very manual, costly, and can take up to 50 days for settlement. By leveraging blockchain, we are creating infrastructure fit for the 21st century, designed to reduce settlement times, cut costs, and improve access to private market investments,” he said
Microsoft, which has owned a 4 percent stake in LSEG since 2022, played a crucial role in this launch. Bill Borden, Corporate Vice President of Worldwide Financial Services at Microsoft, said the rollout demonstrates the potential of their joint efforts.
Many industry leaders have similarly brought blockchain technology to their daily operations. BlackRock CEO Larry Fink has argued that tokenisation will “revolutionise investing,” cutting settlement times from days to seconds and allowing markets to operate continuously. JPMorgan had also piloted blockchain-based settlement systems, testing synchronised transactions across multiple ledgers, a sign of growing institutional belief in the potential of tokenisation.
LSEG has started to incorporate blockchain technology into its capital market operations by completing its first blockchain-powered transaction. This deployment of the DMI platform represents the exchange’s effort to streamline the issuance, trading, and settlement of private funds.
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