The London Stock Exchange Group (LSEG) announced on Monday that it has completed its first transaction on its new blockchain-based infrastructure platform for private funds. The platform, named the Digital Markets Infrastructure (DMI), was developed in partnership with Microsoft and is part of LSEG’s effort to modernize global financial markets.
How the Platform Works
The DMI platform is designed to handle the entire lifecycle of a private fund, from its initial issuance to post-trade settlement and servicing. By leveraging blockchain technology, the platform aims to streamline workflows, improve distribution, and enhance liquidity in private markets, which have historically been difficult to access.
- End-to-End Transactions: The platform facilitates transactions from the issuance of assets all the way through post-trade settlement.
- Interoperability: It is designed to work with both existing blockchain networks and traditional financial infrastructure, ensuring a smooth integration for all users.
- Scalability: Built on Microsoft Azure, the platform is designed to be scalable and secure.
Initial Users and Future Plans
Private funds are the first asset class to be supported on the DMI platform. The inaugural transaction involved investment manager MembersCap, which executed a primary fundraise with the crypto exchange firm Archax. LSEG plans to expand the platform to other assets in the future, signaling its commitment to using distributed ledger technology to create a more efficient and connected financial ecosystem.
