London Stock Exchange Group Launches Blockchain Platform for Private Investment Funds

Update Sept. 15, 7:58 am UTC: This article has been updated to include another section on LSEG and Microsoft’s collaboration.

The London Stock Exchange Group (LSEG) has introduced a blockchain-based infrastructure platform for private funds, becoming the first major global stock exchange to adopt such a system.

This platform, known as Digital Markets Infrastructure (DMI), facilitates the entire lifecycle of digital assets, spanning from issuance and tokenization to post-trade settlement. Developed in partnership with Microsoft, it operates on Microsoft Azure, as the exchange announced on Monday.

LSEG stated that the system aims to ensure interoperability between distributed ledger technology and traditional financial mechanisms, striving to be the first global exchange group to support clients throughout the “full funding continuum.”

The DMI has launched with private funds as the initial asset class, with plans to incorporate more asset categories in the future.

As part of the initial offering, private funds on DMI will be accessible to users of Workspace, allowing general partners to engage with professional investors on these platforms.

The first clients onboarded include capital management firm MembersCap and London-based Archax, a Financial Conduct Authority-regulated crypto exchange. MembersCap executed the platform’s inaugural transaction, with Archax acting as a nominee for the Cardano Foundation.

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Microsoft, LSEG aim to unlock new opportunities for customers

According to Bill Borden, corporate vice president of worldwide financial services at Microsoft, the collaboration with LSEG on this blockchain-based platform exemplifies the innovation driving their strategic partnership.

“Together, we’re reshaping the future of global finance to empower our customers to unlock new opportunities and drive meaningful change.”

The current private market processes are primed for innovation. LSEG aims to enhance investor access to capital markets and boost liquidity, as stated by Darko Hajdukovic, head of digital markets infrastructure at LSEG.

“Our goal is to continually collaborate with all stakeholders to improve efficiencies and connectivity for both digitally-native and traditional assets,” Hajdukovic noted, emphasizing the strong demand for an end-to-end, interoperable, regulated financial markets DLT infrastructure.

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The platform ultimately aspires to provide greater investor access to private market investment opportunities that were previously hard to find and engage in.

Incentives based on blockchain from established finance firms may speed up the merging of traditional finance with decentralized finance (DeFi), potentially happening sooner than anticipated, according to Nelli Zaltsman, head of blockchain payments innovation at JPMorgan’s Kinexys.

“We’ve always aimed to identify the best approach to work with the public blockchain, depending on regulatory frameworks,” said Zaltsman during a discussion with Chainlink Labs co-founder Sergey Nazarov at the RWA Summit Cannes 2025.

In June, JPMorgan tested synchronized settlement technology with Chainlink, enabling its blockchain-based deposits to manage transactions across various blockchains.