London Stock Exchange Launches Microsoft-Backed Blockchain Platform for Private Funds
The London Stock Exchange Group (LSEG) has launched a blockchain-based infrastructure designed to modernize how private funds are issued, traded, and settled, a first for a major global exchange.
Announced on Sept. 15, the new Digital Markets Infrastructure (DMI) platform is built in collaboration with Microsoft and runs on the Microsoft Azure cloud. The system supports the full life cycle of digital assets, from tokenization and issuance to post-trade settlement, while maintaining interoperability with traditional financial systems.
“This is about unlocking access and efficiency across both digitally native and traditional markets,” said Darko Hajdukovic, LSEG’s head of digital markets infrastructure. “There’s clear appetite for an end-to-end, regulated platform that connects these worlds.”
Private Funds Go Live First
Private funds are the first asset class to use the platform, giving professional investors and fund managers new ways to raise and deploy capital. The exchange plans to extend the service to other asset categories over time.
As part of the debut, capital management firm MembersCap completed the inaugural transaction on DMI, with Archax, a Financial Conduct Authority–regulated crypto exchange, acting as nominee for the Cardano Foundation. Investors on LSEG Workspace, the group’s flagship data terminal, can now discover and interact with private funds directly through the platform.
Strategic Partnership With Microsoft
Microsoft executives described the initiative as a milestone in their ongoing collaboration with LSEG.
“Together, we’re reshaping the future of global finance to empower customers to unlock new opportunities and drive meaningful change,” said Bill Borden, Microsoft’s corporate vice president for worldwide financial services.
By combining LSEG’s market infrastructure with Microsoft’s cloud and distributed ledger technology (DLT) expertise, the two companies aim to bring more transparency, liquidity, and operational efficiency to traditionally opaque private markets.
A Step Toward Converging TradFi and DeFi
Industry observers say the DMI launch highlights how fast traditional finance is embracing blockchain. Private markets, historically fragmented and difficult for many investors to access, could see significant new liquidity if other asset classes follow.
Nelli Zaltsman, head of blockchain payments innovation at JPMorgan’s Kinexys, noted that regulated initiatives like LSEG’s may accelerate the convergence of traditional and decentralized finance. “Projects like this show how public blockchain concepts can integrate with existing regulatory frameworks,” she said.
For LSEG, the blockchain rollout is more than a technical upgrade. It represents a strategic bet that tokenization and distributed ledger infrastructure will become integral to how capital is raised and traded globally, bringing private markets closer to the speed and transparency of public ones.
