London Stock Exchange Debuts Blockchain Platform for Private Funds

Core Insights - The London Stock Exchange Group (LSEG) has launched its Digital Markets Infrastructure (DMI) platform, a blockchain-powered system for private funds, developed in collaboration with Microsoft [1][5] - The DMI platform aims to enhance liquidity and operational efficiency in the private markets, which are valued at over £1.2 trillion in the UK [4][7] Group 1: Platform Features and Clients - The DMI platform supports the entire lifecycle of digital assets, including issuance, tokenization, distribution, investment, and post-trade settlement [1] - Initial clients onboarded include MembersCap, Archax, and EJF Capital, with MembersCap's MCM Fund 1 executing the first transaction on the platform [2][5] - The platform's design integrates blockchain with traditional finance, utilizing LSEG's existing products for improved investor access [2] Group 2: Market Impact and Future Plans - The DMI platform is expected to broaden distribution, enhance capital-raising efforts, and improve liquidity for professional investors and asset managers [4][7] - LSEG plans to expand the DMI to other asset classes, with pilot transactions already in progress [8] - UK regulators have established frameworks for digital securities, facilitating secondary market liquidity and tax exemptions [8]