Nikolas Sargeant
The London Stock Exchange Group (LSEG) has made financial history by launching the world's first blockchain-based infrastructure platform for private funds trading. The Digital Markets Infrastructure (DMI) platform represents a groundbreaking shift as LSEG becomes the first major global stock exchange to implement such comprehensive blockchain technology for institutional trading operations.
Developed in partnership with Microsoft and powered by Microsoft Azure cloud infrastructure, the DMI platform supports the complete lifecycle of digital assets from initial issuance and tokenization through to final settlement. The system is specifically designed to bridge the gap between emerging distributed ledger technology and established traditional financial systems, positioning LSEG as a pioneer in hybrid financial infrastructure.
Capital management firm MembersCap and London-based regulated crypto exchange Archax became the platform's inaugural clients, with MembersCap completing the first transaction while Archax served as nominee for the Cardano Foundation. The platform initially focuses on private funds but plans to expand to additional asset classes, with private funds being discoverable through Workspace to connect general partners with professional investors.
According to Darko Hajdukovic, LSEG's head of digital markets infrastructure, the initiative addresses significant market demand for end-to-end, interoperable, and regulated financial markets distributed ledger technology infrastructure. The platform aims to democratize access to private market investment opportunities that were previously difficult to discover and participate in, potentially accelerating the convergence between traditional finance and decentralized finance ecosystems.
Expanding Crypto Product Offerings
This blockchain infrastructure launch complements LSEG's recent expansion into cryptocurrency exchange-traded products. Following approval from the Financial Conduct Authority, the London Stock Exchange has listed multiple crypto ETNs from major issuers including 21Shares and WisdomTree. The 21Shares offerings include Bitcoin ETN, Ethereum Staking ETN, Bitcoin Core ETN, and Ethereum Core ETN, while WisdomTree introduced Physical Bitcoin and Physical Ethereum ETFs. However, these crypto products remain restricted to professional investors under current FCA regulations, limiting retail access despite growing institutional demand for digital asset exposure through traditional market infrastructure.
