The London Stock Exchange Group (LSEG) has launched a blockchain-based platform for private funds, making it the first major global stock exchange to adopt this kind of infrastructure.

The new system, called Digital Markets Infrastructure (DMI), was built with Microsoft and runs on Microsoft Azure. It is designed to cover the full lifecycle of digital assets — from issuance and tokenization to settlement — while also connecting blockchain-based systems with traditional financial infrastructure. LSEG said the project is part of its goal to become the first exchange group to serve clients across the entire funding spectrum.

Private funds are the first assets supported on the platform, with plans to expand into other classes in the future. As part of the launch, private funds will also be accessible through Workspace, enabling general partners to connect with professional investors.

Capital management firm MembersCap and UK-based Archax, a cryptocurrency exchange regulated by the Financial Conduct Authority, were the first to join. MembersCap completed the debut transaction, with Archax acting as a nominee for the Cardano Foundation.

Microsoft partnership and market innovation

Microsoft emphasized the collaboration as a sign of how blockchain innovation is reshaping finance. “Together, we’re reshaping the future of global finance to empower our customers to unlock new opportunities and drive meaningful change,” said Bill Borden, Microsoft’s corporate vice president of worldwide financial services.

LSEG’s head of digital markets infrastructure, Darko Hajdukovic, explained that today’s private markets are ready for disruption and that the platform could improve investor access, enhance liquidity, and increase efficiency across both digital and traditional assets.

A step toward broader tokenization

The ultimate aim of the DMI is to make private market investments more accessible and easier to participate in. Financial leaders see this as part of a broader shift, where tokenization could accelerate the blending of traditional finance with decentralized models.

Nelli Zaltsman, head of blockchain payments innovation at JPMorgan’s Kinexys, noted that their goal has always been to find ways to work with public blockchains where regulation permits. This sentiment echoed comments made alongside Chainlink Labs co-founder Sergey Nazarov at the RWA Summit in Cannes 2025.

JPMorgan itself piloted synchronized settlement technology in June using Chainlink, allowing blockchain-based deposits to interact across multiple networks.

Sources:

https://www.lseg.com/en/media-centre/press-releases/2025/lseg-launches-digital-markets-infrastructure-platform-for-private-funds-and-facilitates-first-transaction

https://cointelegraph.com/news/london-stock-exchange-group-blockchain-platform