LSEG's Blockchain Platform Marks New Era for Private Markets

LSEG has launched its Digital Markets Infrastructure (DMI) platform, a blockchain-powered solution for private funds, and has successfully facilitated its first transaction. The platform, built on Microsoft Azure, is designed to streamline the full asset lifecycle, from issuance and tokenisation to distribution, post-trade settlement, and servicing across multiple asset classes. LSEG aims to leverage this infrastructure to improve access, distribution, and liquidity in private markets, aligning with its broader strategic initiatives, including the Private Securities Market.

DMI is built with an open and interoperable philosophy, enabling seamless integration with both traditional financial systems and distributed ledger technologies. It is intended to bring together market participants globally, facilitating capital raising, broader distribution, and enhanced liquidity within a regulated environment. The platform's design emphasizes scalability, resilience, and innovation, with a strong focus on maintaining high security standards. LSEG and Microsoft are committed to continuing their collaboration to develop and expand the platform’s capabilities.

The initial offering of the DMI platform includes the discovery of private funds by Workspace users, a feature that allows general partners to interact with professional investors more efficiently. Investors can now discover, analyze, and access private market investment opportunities that were previously difficult to reach. This integration enhances the platform’s utility by embedding it into the daily workflows of professionals already using Workspace.

MembersCap and Archax have been the first clients to onboard to the DMI platform. The first transaction was executed by MembersCap as the general partner of MCM Fund 1, with Archax acting as the nominee for a major Web3 foundation. EJF Capital has also joined as an early adopter, with a selection of its funds expected to become available on the platform soon. This early adoption highlights the market's interest in an end-to-end, regulated DLT infrastructure for private markets.

Dr. Darko Hajdukovic, Head of Digital Markets Infrastructure at LSEG, emphasized the platform's potential to transform the private markets sector by streamlining workflows and enhancing connectivity. He noted that the successful onboarding of clients and the completion of the first transaction are significant milestones that demonstrate demand for an interoperable and efficient infrastructure for digital assets. Bill Borden, Corporate Vice President of Worldwide Financial Services at Microsoft, praised the partnership as a model of innovation, stating that it is helping to reshape the future of global finance.

LSEG, headquartered in the United Kingdom, operates in more than 65 countries and is a leading global provider of financial markets infrastructure and data. The company supports over 40,000 customers in 170 countries and employs more than 26,000 people globally. LSEG’s mission is to enable the sustainable growth and stability of its customers and their communities by providing comprehensive solutions across the trade lifecycle, including data and analytics, indices, capital formation, trade execution, and post-trade services.