The London Stock Exchange Group (LSEG) has officially launched its innovative Digital Markets Infrastructure (DMI) platform, a blockchain-centric system crafted to revolutionize the issuance, trading, and servicing of private funds. This program, developed in partnership with Microsoft and hosted on Microsoft Azure, seeks to enhance efficiency, transparency, and scalability throughout the asset lifecycle, encompassing phases from initial issuance and tokenization through to distribution, settlement, and ongoing servicing.
This initiative represents a crucial advancement in LSEG’s overarching goal to emerge as the world’s first global exchange group that caters to clients across the entire funding continuum. Although private funds are the inaugural asset class to utilize the platform, there are plans to extend its application to other asset classes in the future.
One of the standout features of the DMI system is its open and interoperable design, allowing it to integrate seamlessly with both existing distributed ledger technology (DLT) solutions as well as traditional financial systems. By linking with LSEG’s Workspace platform, the DMI system enhances the visibility of private funds to professional investors in their daily workflows. This integration streamlines the connection between general partners and a wider range of potential investors, thus facilitating easier access to opportunities that have traditionally posed challenges in discovery and assessment.
MembersCap and Archax are among the first clients to engage with the platform. The inaugural transaction featured MembersCap, standing as the general partner of MCM Fund 1, which successfully completed a primary fundraise where Archax acted as the nominee for a major Web3 foundation. EJF Capital has also come onboard as an early adopter, with expectations of several funds being listed on the platform shortly.
LSEG’s commitment to utilizing Microsoft Azure underscores a robust dedication to high levels of security, resilience, and scalability within the platform. The framework is designed to promote innovation while adhering to the rigorous regulatory and operational standards mandated in global financial markets. By fostering connections among participants from diverse sectors of the international investment community, the DMI platform aims to enhance distribution, boost liquidity, and create a reliable environment for capital raising and asset servicing.
In statements regarding the launch, Dr. Darko Hajdukovic, Head of Digital Markets Infrastructure at LSEG, emphasized the ongoing need for improvements in private market processes. He underscored LSEG’s commitment to improving access to these markets by streamlining workflows and enhancing distribution capabilities. “The onboarding of our first clients and this first transaction are significant milestones, demonstrating the appetite for an end-to-end, interoperable, regulated financial markets DLT infrastructure,” he remarked.
Bill Borden, Corporate Vice President for Worldwide Financial Services at Microsoft, further highlighted the collaboration between the two organizations as a transformative force in global finance. “Together, we’re reshaping the future of global finance to empower our customers to unlock new opportunities and drive meaningful change,” he stated.
With the launch of the DMI platform, LSEG aims to position itself at the forefront of innovation in the financial sector, driving significant change for digital assets and leading the way in the evolution of private market accessibility.
