London Stock Exchange Launches Blockchain Platform to Digitize Private Fund Management
- London Stock Exchange launches a blockchain platform to manage private funds using Microsoft Azure technology.
- The new platform connects private fund managers with investors and supports digital asset issuance and settlement.
- Tokenized assets could reach $16 trillion by 2030 as more institutions adopt blockchain infrastructure.
The London Stock Exchange Group (LSEG) has launched a blockchain-based platform called Digital Markets Infrastructure (DMI). This marks the first time a major global exchange has used blockchain to manage private funds. Developed in collaboration with Microsoft, the platform runs on Microsoft Azure. It supports the full lifecycle of digital assets, including issuance, tokenization, and post-trade settlement.
LSEG’s goal is to link traditional financial systems with distributed ledger technology. The exchange aims to support clients across the entire funding process. The first asset class launched on DMI is private funds, with additional asset types planned for future integration.
Early Adoption and First Transactions
Two financial firms, MembersCap and Archax, became the first clients onboarded to the platform. MembersCap completed the platform’s first transaction, while Archax acted as a nominee for the Cardano Foundation. Archax is regulated by the UK’s Financial Conduct Authority.
Private funds listed on DMI are visible to professional investors using LSEG’s Workspace platform. This allows general partners to connect directly with potential backers. This feature increases transparency and improves investor access in typically closed markets.
Purpose and Technology Integration
The DMI platform enables interoperability between blockchain systems and traditional markets. LSEG believes this can improve efficiency in capital raising and liquidity for private markets. The exchange also aims to simplify discovery and participation in private investments.
Blockchain tokenization turns traditional assets into digital tokens. This technology offers quicker settlement and allows fractional ownership. It may also provide broader access to investments that were previously hard to reach.
The platform reflects rising institutional interest in digital assets. Several major financial institutions are investing in tokenization technologies for asset management and settlement.
Wider Market Trends and Future Outlook
Tokenization of real-world assets is gaining attention from traditional finance and blockchain-native firms alike. Analysts estimate tokenized assets could reach $16 trillion by 2030.
U.S. Treasury tokenization alone may hit $4.2 billion in 2025. Short-term government bonds are expected to drive most of this growth.
Financial firms see potential in combining regulated structures with blockchain efficiency. LSEG’s platform could push further adoption of digital tools in mainstream finance.
As traditional and decentralized finance converge, more exchanges may adopt similar systems. LSEG’s initiative is a sign of accelerating change across global capital markets.
