London Stock Exchange Group (LSEG) has launched its Digital Markets Infrastructure (“DMI”) platform designed for private funds, while also confirming the completion of its first transaction through the system.
The LSEG Digital Markets Infrastructure platform, powered by Microsoft Azure, is set to deliver blockchain-powered scalability and efficiency across the full lifecycle of assets. This includes issuance, tokenisation, distribution, post-trade settlement, and servicing across different asset classes. Importantly, LSEG has ensured that the platform will remain interoperable with both current distributed ledger technologies and traditional financial market frameworks, drawing on a wide range of the group’s services, including Workspace.
Created in collaboration with Microsoft, the initiative reflects LSEG’s commitment to becoming the first global exchange group to provide comprehensive support to clients throughout the funding continuum. Alongside related projects such as the Private Securities Market, private funds have been identified as the first asset class to benefit from the DMI platform for private funds, with further expansion to other classes anticipated.
This DMI platform for private funds is based on an open and interoperable design ethos, aligning a diverse pool of participants from worldwide markets.Its ambition is to extend distribution, ease capital raising, increase liquidity, and simplify asset servicing in a secure and regulated environment.
Using Microsoft Azure gives the platform scalability, resilience, security, and faster financial innovation. Both Microsoft and LSEG have agreed to continue their partnership to further enhance and develop the capabilities of the platform.
Within the first phase, private funds listed on the DMI platform will also be integrated into Workspace, enabling its users to access these funds directly within their workflow. This integration creates opportunities for General Partners to engage with professional investors at scale, while investors can more easily discover, evaluate, and access private market investment opportunities that were previously hard to reach.
Among the first to adopt are MembersCap and Archax. The first transaction was successfully executed with MembersCap, acting as General Partner for MCM Fund 1, supported by Archax as nominee for a major web-3 foundation. EJF Capital has also come on board, with selected funds scheduled to be made available through the platform.