Key Takeaways:
- LSEG has launched its Digital Markets Infrastructure (DMI) platform to streamline private fund operations using blockchain technology.
- The platform integrates with LSEG Workspace, giving investors and fund managers direct access to private market offerings within their existing workflows.
- MembersCap and Archax completed the first transaction on the platform, while EJF Capital is preparing to onboard selected funds.
- Built in partnership with Microsoft, DMI is designed as an open, regulated infrastructure aimed at improving liquidity, access, and efficiency across asset classes.
The London Stock Exchange Group (LSEG) has officially launched its Digital Markets Infrastructure (DMI) platform, marking a significant step toward transforming private fund operations through Blockchain technology. The platform, built on Microsoft Azure, aims to bring new levels of efficiency and scalability to asset issuance, tokenization, settlement, and servicing across multiple asset classes.
According to the official announcement, the DMI platform is designed to work seamlessly with both blockchain-based and traditional financial systems, making it easier for users to adopt without disrupting the systems they already rely on. It also connects directly with LSEG’s Workspace, allowing investors and fund managers to access and manage private market offerings within the tools they already use.
Developed in partnership with Microsoft, the platform is part of LSEG’s broader plan to become the first global exchange that supports clients across the entire funding journey, from raising capital to managing assets. While the initial focus is on private funds, LSEG plans to expand the platform’s capabilities to include a broader range of asset classes, unlocking new investment offerings in the process.
Bill Borden, Corporate Vice President of Worldwide Financial Services at Microsoft, highlighted the strategic significance of the partnership:
Microsoft’s collaboration with LSEG on its Digital Markets Infrastructure (DMI) is a powerful example of the innovation driving our strategic partnership,” he said. “Together, we’re reshaping the future of global finance to empower our customers to unlock new opportunities and drive meaningful change.
Furthermore, Dr. Darko Hajdukovic, Head of Digital Markets Infrastructure at LSEG, highlighted the platform’s potential to modernize private markets.
There are many processes in private markets today that can be improved,” he said. “We intend to do this by continually working with all stakeholders to enhance efficiencies and connectivity for both digitally-native and traditional assets.
The platform is already live and operational, with its first transaction successfully executed by MembersCap for MCM Fund 1. Archax, meanwhile, acted as the nominee in the deal on behalf of a major Web3 foundation. Both firms are among the earliest adopters of the DMI platform, which is already drawing broader market interest, with EJF Capital also preparing to list a selection of its funds in the near future.
DMI in Practice: What It Offers
The DMI platform is designed to enhance transparency and accessibility across private markets. Through its integration with LSEG Workspace, it enables investment professionals to discover and evaluate private fund offerings that were once difficult to access. At the same time, it equips General Partners with tools to engage more effectively with a broader network of investors.
These capabilities are supported by the platform’s open and regulated design, which is intended to attract a diverse, global mix of market participants. By broadening capital access, increasing liquidity, and streamlining key workflows, DMI delivers these improvements within a secure, compliant, and scalable digital infrastructure.
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