London Stock Exchange Launches Blockchain Platform for Private Funds

The London Stock Exchange (LSEG) has recently completed its inaugural transaction using a new blockchain-based platform designed for managing private funds. This innovative Digital Markets Infrastructure (DMI) leverages blockchain technology for the entire asset lifecycle, from issuance through to settlement, promising enhanced efficiency compared to traditional systems.

Key Facts:

• The DMI was developed utilizing Microsoft Azure and aims to streamline operations in the private funds sector.
• Investment manager MembersCap and digital asset exchange Archax are the first clients to utilize the DMI, successfully executing a fund-raising transaction for MembersCap’s MCM Fund 1.
• The launch signifies an important advancement towards integrating blockchain technology into the existing financial markets landscape, according to LSEG’s Dark Hajdukovic, who stated that this is a significant step in creating a regulated, interoperable financial market.

LSEG is committed to ensuring that its DMI collaborates effectively with existing market services within both blockchain and traditional finance realms. The move follows a trend among financial exchanges to adopt blockchain to enhance operational productivity and reduce costs.