LSEG has announced the launch of its Digital Markets Infrastructure (DMI) platform for private funds, successfully facilitating its inaugural transaction.
The DMI platform, powered by Microsoft Azure, aims to provide blockchain-powered scale and efficiencies across the full asset lifecycle. This includes issuance, tokenisation, distribution, post-trade asset settlement, and servicing for multiple asset classes. LSEG intends for the platform to be interoperable with both current distributed ledger technology solutions and traditional finance systems, leveraging various LSEG products and services, including Workspace.
Developed in collaboration with Microsoft, the DMI aligns with LSEG’s strategic objective of becoming a global exchange group that supports customers across the entire funding continuum. This initiative complements other group efforts, such as the Private Securities Market. Private funds are the initial asset class targeted by the DMI platform, with plans for expansion to additional asset classes in the future.
Adopting an open and interoperable philosophy, the DMI platform seeks to unite participants from the international market to broaden distribution, raise capital, increase liquidity, and service assets within a regulated environment. Its architecture, built on Microsoft Azure, enhances scalability and resilience, accelerating innovation while maintaining high security standards. LSEG and Microsoft plan to continue their collaboration for further development and scaling of the platform.
As part of its initial offering, private funds admitted to DMI will be discoverable by Workspace users within their daily workflows. This integration allows General Partners to engage with professional investors at scale on a platform these investors already utilize, enabling them to discover, analyze, and access private market investment opportunities that were previously difficult to reach.
MembersCap and Archax have been onboarded as the platform’s first clients. The first transaction involved MembersCap, acting as the General Partner of MCM Fund 1, successfully executing a primary fundraise with Archax serving as a nominee for a major web-3 foundation. EJF Capital has also joined as an early adopter, with a selection of their funds expected to be available on the platform soon.
Dr. Darko Hajdukovic, Head of Digital Markets Infrastructure at LSEG, commented on the development: “There are many processes in private markets today that can be improved. At LSEG we are 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.”
Bill Borden, Corporate Vice President, Worldwide Financial Services, Microsoft, stated: “Microsoft’s collaboration with LSEG on its Digital Markets Infrastructure (DMI) is a powerful example of the innovation driving our strategic partnership. Together, we’re reshaping the future of global finance to empower our customers to unlock new opportunities and drive meaningful change.”
LSEG (London Stock Exchange Group) is a global financial markets infrastructure and data provider, based in the United Kingdom. With operations in 65 countries across EMEA, North America, Latin America, and Asia Pacific, and a global workforce of over 26,000, LSEG plays a role in the world’s financial system by providing data and analytics, indices, capital formation, and trade execution, clearing, and risk management across multiple asset classes.
