The London Stock Exchange (LSEG) has introduced a blockchain-based Digital Markets Infrastructure (DMI) platform specifically designed for private funds, successfully facilitating its inaugural transaction.
Powered by Microsoft Azure, the DMI aims to provide enhanced scalability and efficiency for the entire asset lifecycle, encompassing issuance, tokenization, distribution, and post-trade asset settlement across various asset classes. Private funds are the first asset class to utilize this innovative platform, with plans for future expansion into additional categories.
As part of the launch, private funds registered with DMI will be accessible to users of LSEG’s Workspace platform, simplifying the daily workflow for professionals. This functionality allows General Partners to engage with professional investors more effectively, enabling them to uncover, analyze, and seize new private market investment opportunities that were previously difficult to access.
MembersCap and Archax have been the first clients onboarded onto the platform, with MembersCap successfully executing a primary fundraise for MCM Fund 1, while Archax acted as nominee for a significant web3 foundation. EJF Capital is also on track to join as an early adopter, with a selection of its funds expected to be available on the platform shortly.
Darko Hajdukovic, head of digital markets infrastructure at LSEG, remarked, “The onboarding of our initial clients and the completion of our first transaction are important milestones. They illustrate the demand for a comprehensive, interoperable, and regulated DLT infrastructure in financial markets. LSEG’s role as a market convener is crucial in driving significant scale in digital assets and fostering meaningful change.”