The London Stock Exchange Group (LSEG) has successfully completed its first fundraising transaction using a new blockchain-based platform developed in partnership with Microsoft. The platform, called Digital Markets Infrastructure, represents a significant milestone as the first major global stock exchange to launch a complete blockchain-powered system for the full lifecycle of digital assets—from issuance and tokenization to trading and settlement.
The inaugural transaction was conducted by reinsurance asset manager MembersCap, which used the platform to raise money for its private fund. London-based crypto exchange Archax, regulated by the Financial Conduct Authority, participated as the first client and acted as nominee for the Cardano Foundation. The platform runs on Microsoft Azure and integrates with LSEG's Workspace system, making private funds discoverable to professional investors.
The system aims to revolutionize private market transactions by reducing settlement times from 40-50 days to mere seconds, while lowering costs and increasing accessibility. Darko Hajdukovic, head of digital markets infrastructure at LSEG, stated: "We want capital markets to be more efficient and accessible." Microsoft, which owns 4% of LSEG since a 2022 investment, played a crucial role in designing and supporting the platform.
While initially focused on private funds, LSEG plans to expand the platform to other asset classes including bonds and equities. The success of this initiative depends on regulatory approval and broader adoption by fund managers and investors.