LSEG Completes First Blockchain-based Fundraising

The London Stock Exchange Group (LSEG) has launched its Digital Markets Infrastructure (DMI) platform for private funds and facilitated its first transaction.

DMI, which is powered by Microsoft Azure, will deliver blockchain-powered scale and efficiencies for the full asset lifecycle – from issuance, tokenisation and distribution to post trade asset settlement and servicing, across multiple asset classes.

LSEG will ensure that this platform is interoperable with current market solutions in distributed ledger technology as well as traditional finance, fully utilising a range of the group’s products and services, including Workspace. 

Developed in collaboration with Microsoft, DMI is aligned with LSEG’s goal of being the first global exchange group to support customers across the full funding continuum, alongside other group initiatives such as the Private Securities Market. Private funds are the first asset class to benefit from the DMI platform, with expansion to additional asset classes planned.

DMI adopts an open and interoperable philosophy. It brings together participants from across the international market to broaden distribution, raise capital, increase liquidity, and service assets within a trusted and regulated environment.

The DMI platform is built on Microsoft Azure, thus adding to its scalability and resilience. Its design accelerates innovation, while maintaining high levels of security. LSEG and Microsoft will continue their collaboration to develop and scale the platform.

As part of the initial offering, private funds admitted to DMI will be discoverable by Workspace’s users as part of their day-to-day workflow, enabling General Partners to interact at scale with professional investors on a platform these investors already use, and they in turn will be able to discover, analyse, and access new private market investment opportunities that were previously hard to reach. 

First Transaction

MembersCap and Archax have been onboarded as the first clients to the platform and the first transaction has been facilitated with MembersCap, as the General Partner of MCM Fund 1, successfully executing a primary fundraise with Archax acting as nominee for a major web-3 foundation.

EJF Capital has also been onboarded as an early adopter and a selection of their funds will be available on the platform soon, LSEG said on Monday.

Dr Darko Hajdukovic, Head of Digital Markets Infrastructure, LSEG, said that there were many processes in private markets at present that can be improved and LSEG was 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. The onboarding of our first clients and this first transaction are significant milestones, demonstrating the appetite for an end-to-end, interoperable, regulated financial markets DLT infrastructure. LSEG’s position as a convener of markets can bring significant scale to digital assets and effect real change,” he said.