The London Stock Exchange Group (LSEG) has rolled out a blockchain-based platform for private funds, becoming the first global stock exchange to integrate such infrastructure. The initiative, developed with Microsoft, highlights how traditional finance is embracing distributed ledger technology (DLT).
The platform, known as Digital Markets Infrastructure (DMI), runs on Microsoft Azure and supports the full lifecycle of digital assets, including issuance, tokenization, and post-trade settlement. LSEG says the goal is to bridge blockchain systems with legacy finance, ultimately creating an end-to-end, regulated market infrastructure for both traditional and digital assets.
Private funds are the first asset class to go live on DMI, with additional asset classes expected to follow. Through integration with Workspace, general partners can connect directly with professional investors. Early adopters include MembersCap, which carried out the first transaction, and Archax, a London-based FCA-regulated crypto exchange, acting as nominee for the Cardano Foundation.
Microsoft hailed the collaboration as a milestone in its partnership with LSEG. “Together, we’re reshaping the future of global finance, helping customers unlock new opportunities and drive meaningful change,” said Bill Borden, corporate VP of worldwide financial services at Microsoft.
According to Darko Hajdukovic, head of digital markets infrastructure at LSEG, demand for modernization is strong. He noted that investors and issuers alike want a regulated system that can provide interoperability and greater access to private markets—areas long considered opaque and difficult to navigate.
The launch underscores a broader trend: traditional finance institutions increasingly turning to blockchain to improve efficiency, transparency, and liquidity. At the recent RWA Summit in Cannes, JPMorgan’s Nelli Zaltsman argued that projects like DMI could speed up the convergence of traditional finance and decentralized finance (DeFi).
In fact, JPMorgan has already piloted synchronized settlement technology with Chainlink, using blockchain-based deposits to coordinate transactions across multiple networks. Developments like these suggest that real-world asset (RWA) tokenization may reach mainstream adoption faster than expected.
LSEG aims to open up new opportunities for investors while setting a precedent for how regulated exchanges can lead the shift toward tokenized markets by bringing private funds onto blockchain rails. If successful, DMI could mark a turning point in how global financial infrastructure is built for the digital era.