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    London Stock Exchange Group Launches Blockchain Solution for Private Funds

    Ethan CarterBy No Comments3 Mins Read
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    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, marking it as the first major global stock exchange to implement such a system.

    This platform, named Digital Markets Infrastructure (DMI), facilitates the entire lifecycle of digital assets—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 provide interoperability between distributed ledger technology and conventional financial systems, striving to be the first global exchange group to assist clients throughout the “full funding continuum.”

    Private funds will be the initial asset class to go live on the DMI, with plans to incorporate additional asset classes in the future.

    For the initial offering, private funds on the DMI will be accessible to Workspace users, enabling general partners to connect with professional investors on these platforms.

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

    Related: RWAs: new institutional ‘trust’ layer to boost tokenized ESG investment

    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 new blockchain-based platform serves as 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.”

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

    “Our aim is to achieve this by continually engaging with all stakeholders to improve efficiencies and connectivity for both digitally-native and traditional assets,” Hajdukovic mentioned, adding that there is a notable “appetite for an end-to-end, interoperable, regulated financial markets DLT infrastructure.”

    Related: Trump-linked WLFI’s 40% decline causes millions in losses for crypto whales: Finance Redefined

    Ultimately, this platform seeks to enhance investor access to private market investment opportunities that were previously challenging to locate and engage with.

    Incentives from traditional finance giants based on blockchain may speed up the merging of traditional finance and decentralized finance (DeFi), which may occur sooner than anticipated, as indicated by Nelli Zaltsman, head of blockchain payments innovation at JPMorgan’s Kinexys.

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

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