London Stock Exchange Group (LSEG) has launched its Digital Markets Infrastructure (DMI) platform for private funds, completing its first transaction and marking a significant step in its ambition to bring blockchain-powered efficiencies to global markets.

The DMI platform, built on Microsoft Azure, is designed to deliver efficiencies across the full asset lifecycle—from issuance and tokenisation to post-trade settlement and servicing. By adopting an open and interoperable approach, it aims to connect market participants across both distributed ledger technology (DLT) and traditional finance systems.

Blockchain-Powered Platform

LSEG said the platform is part of its strategy to become the first global exchange group to support customers across the entire funding continuum, complementing initiatives such as its Private Securities Market. Private funds are the first asset class available on DMI, with further asset classes expected in future phases.

MembersCap and Archax have been onboarded as the first clients. MembersCap, acting as General Partner of MCM Fund 1, successfully completed a primary fundraise via the platform, with Archax serving as nominee for a major web3 foundation. EJF Capital has also joined as an early adopter and will soon make a selection of funds available.

A key feature of DMI is its integration with LSEG Workspace. Private funds admitted to DMI will be discoverable to Workspace users within their existing workflows, allowing General Partners to scale investor outreach and enabling professional investors to identify and access previously hard-to-reach private market opportunities.

Industry Support and Collaboration

Commitment to Market Access

Dr. Darko Hajdukovic, Head of Digital Markets Infrastructure at LSEG, said: “There are many processes in private markets today that can be improved. At LSEG we are committed to significantly improving access to private markets, by streamlining workflows, enhancing distribution, and enabling liquidity. We intend to do this by continually working with all stakeholders to enhance efficiencies and connectivity for both digitally-native and traditional assets.”

He added that the onboarding of the first clients and successful completion of the first transaction demonstrate strong demand for a regulated, interoperable financial markets DLT infrastructure: “LSEG’s position as a convener of markets can bring significant scale to digital assets and effect real change.”

Technology Backbone

Bill Borden, Corporate Vice President, Worldwide Financial Services at Microsoft, highlighted the partnership’s importance: “Microsoft’s collaboration with LSEG on its Digital Markets Infrastructure (DMI) is a powerful example of the innovation driving our strategic partnership. Together, we’re reshaping the future of global finance to empower our customers to unlock new opportunities and drive meaningful change.”

LSEG said it will continue working with Microsoft to develop and scale the DMI platform, with expansion into additional asset classes already in the pipeline. By combining blockchain technology, open access, and integration with its existing market services, LSEG aims to bring new levels of efficiency and transparency to global private and institutional markets.