LSEG Pushes Into Digital Finance With Blockchain Platform for Private Markets

The London Stock Exchange Group (LSEG) has stepped firmly into the digital finance era with the launch of its new Digital Markets Infrastructure (DMI). This blockchain-powered platform is designed to manage the full lifecycle of tokenised assets, starting with private funds but eventually broadening to cover a wider range of financial instruments. The move reflects a broader trend, as industries beyond typical finance explore how blockchain can bring efficiency and transparency to well-established markets.

For example, the entertainment sector has experimented with NFTs in order to capitalize on digital material, while logistics utilizes blockchain to improve supply chain monitoring. Online gaming itself has embraced the technology: sites such as Coin Poker AU use blockchain to provide gamers with provably fair games, decentralized payouts, and more openness. In contrast, DMI by LSEG shows how large banks are applying the same concept to transform private capital markets.

Developed in partnership with Microsoft, the DMI platform runs on Microsoft Azure, ensuring it benefits from scalability, security, and resilience. One of the platform’s central aims is interoperability. It has been built to bridge distributed ledger technology with the conventional financial systems that investors and regulators already rely on. For LSEG, the project reflects an effort to streamline processes while safeguarding regulatory compliance and investor protections.

Microsoft has underscored the strategic importance of the collaboration, positioning the initiative as a model for how cloud technology can underpin the next generation of financial infrastructure. By leveraging Azure, the platform can scale globally while maintaining high levels of operational security.

The DMI is already live, with its first transaction completed through the involvement of MembersCap acting as general partner and Archax, a UK-regulated digital securities exchange, operating as nominee for a Web3 foundation. This inaugural deal demonstrates how the system can blend traditional roles with digital asset infrastructure.

EJF Capital has also signed on as an early adopter, announcing plans to make some of its funds available through the new system. The inclusion of both traditional asset managers and forward-looking digital platforms suggests that LSEG’s blockchain push could gain traction across a broad investor base.

A key feature of the new platform is its integration with LSEG’s Workspace tool. This gives fund managers and professional investors the ability to manage discovery, capital raising, deal analysis, and ongoing servicing within a familiar environment. LSEG believes this will reduce inefficiencies, simplify workflows, and open up liquidity in markets that have historically been difficult to access.

By creating a unified platform, LSEG hopes to make private funds more attractive and accessible to a wider range of investors. In turn, this could help fuel growth in areas of the financial sector that are often slow to adapt to innovation.

The LSEG launch arrives as tokenisation is gaining momentum worldwide. Regulators such as the European Securities and Markets Authority are examining how distributed ledgers impact investor protection and market efficiency. At the same time, institutions like the Bank for International Settlements are investigating ways to connect traditional financial systems with decentralised finance.

With DMI, the London Stock Exchange places itself at the forefront of this global shift. By combining its established reputation with cutting-edge blockchain infrastructure, it positions London as a hub for digital finance while giving private markets new opportunities to grow in scale and accessibility.