London Stock Exchange Group Launches Blockchain Platform for Private Investments

Update Sept. 15, 7:58 am UTC: This article has been revised to include an additional section on the collaboration between LSEG and Microsoft.

The London Stock Exchange Group (LSEG) has launched a blockchain-based infrastructure platform for private funds, marking it as the first major global stock exchange to adopt such a technology.

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

LSEG stated that the system is designed to enable interoperability between distributed ledger technology and traditional financial systems, aiming to be the first global exchange group to assist clients across the “full funding continuum.”

Private funds are the initial asset class to be launched on the DMI, with plans to incorporate additional asset classes in the future.

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

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

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Microsoft and LSEG aim to create new opportunities for customers

According to Bill Borden, corporate vice president of worldwide financial services at Microsoft, the collaboration between Microsoft and LSEG on the new 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.”

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

“We plan to achieve this by constantly collaborating with all stakeholders to boost efficiencies and connectivity for both digitally-native and traditional assets,” Hajdukovic mentioned, noting a considerable “appetite for an end-to-end, interoperable, regulated financial markets DLT infrastructure.”

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Ultimately, the platform aims to enhance investor access to private market investment opportunities that have been previously hard to identify and engage with.

Blockchain-based incentives from established finance institutions might expedite the convergence of traditional and decentralized finance (DeFi), potentially occurring sooner than anticipated, according to Nelli Zaltsman, head of blockchain payments innovation at JPMorgan’s Kinexys.

“Our objective has always been to discover the best way to collaborate with the public blockchain, regulatory environment permitting,” Zaltsman stated, while speaking alongside Chainlink Labs co-founder Sergey Nazarov at the RWA Summit Cannes 2025.

In June, the banking giant piloted synchronized settlement technology with Chainlink, allowing JPMorgan’s blockchain-based deposits to coordinate transactions across different blockchains.