London Stock Exchange Launches Blockchain Platform with Tokenized Fund Debut

Core Insights - The London Stock Exchange Group (LSEG) has launched a blockchain-based infrastructure platform for private funds, marking a significant entry into digital asset markets [1][8] - The platform, named Digital Markets Infrastructure (DMI), was developed in collaboration with Microsoft and operates on Microsoft Azure [3][8] Platform Features - DMI supports the full lifecycle of digital assets, including issuance, tokenization, and post-trade settlement, aiming to connect traditional capital markets with blockchain networks [3][5] - The platform is initially focused on private markets, allowing general partners and professional investors to discover and interact with fund opportunities through LSEG's Workspace system [5][8] Initial Deployment - MembersCap has raised funds for its tokenized MCM Fund 1 using the new platform, with Archax acting as nominee, marking the first real-world application of the infrastructure [4][8] - LSEG plans to expand the platform to support more asset classes beyond private funds in the future [4] Market Context - Tokenization is gaining traction among banks, asset managers, and infrastructure providers, offering benefits such as faster settlement, broader investor access through fractional ownership, and improved transparency [6] - Despite the potential, tokenized assets currently represent only a small fraction of the trillions managed in traditional funds, indicating that the market is still in its early stages [7]