TLDR
- London Stock Exchange Group launches first blockchain-powered trading platform with Microsoft partnership
- MembersCap completes inaugural private fund transaction using the Digital Markets Infrastructure system
- Platform reduces settlement times from 40-50 days to seconds through tokenization technology
- LSEG becomes first major global exchange to offer complete blockchain trading lifecycle
- System integrates with traditional finance while supporting digital asset discovery and trading
The London Stock Exchange Group has made history by launching the world’s first complete blockchain trading platform for a major stock exchange. The Digital Markets Infrastructure system went live with its first successful transaction on Monday.
MembersCap, a reinsurance asset manager, used the new platform to raise capital for its private fund. This marked the debut of LSEG’s blockchain-powered infrastructure built in partnership with Microsoft.
The system runs on Microsoft Azure and represents a major shift toward digital asset trading. Microsoft acquired a 4% stake in LSEG in 2022 to support this technological development.
LSEG’s platform differs from other blockchain projects by supporting the complete trading cycle. Most competitors only handle parts of the process, while this system covers issuance, trading, and settlement.
How Blockchain Technology Transforms Trading
The Digital Markets Infrastructure uses tokenization to create digital representations of assets. This technology records ownership and tracks transaction history on a distributed ledger.
Traditional private market transactions can take 40-50 days to settle. The blockchain system completes the same processes in seconds rather than weeks.
Darko Hajdukovic, head of digital markets infrastructure at LSEG, explained that current processes are manual and expensive. The new system creates “infrastructure for the 21st century.”
The platform provides interoperability between blockchain technology and existing financial systems. This allows both digital-native and traditional assets to operate together seamlessly.
Private funds represent the first asset class available on the platform. LSEG plans to expand support for additional asset types in future updates.
First Clients Drive Platform Adoption
London-based Archax served as the second launch client alongside MembersCap. Archax operates as a regulated crypto exchange under Financial Conduct Authority oversight.
The Cardano Foundation participated through Archax as a nominee in the inaugural transaction. This demonstrates the platform’s ability to bridge traditional finance and cryptocurrency sectors.
The blockchain system integrates with LSEG’s Workspace platform, which competes with Bloomberg terminals. This integration makes private funds discoverable to professional investors.
Fund managers can now access a larger pool of potential investors through the digital platform. The system aims to improve liquidity in private markets that were previously difficult to access.
Bill Borden from Microsoft’s financial services division called the collaboration a powerful example of strategic partnership. The companies worked together to reshape global finance infrastructure.
BlackRock CEO Larry Fink has praised tokenization technology, stating it will “revolutionize investing.” He predicts markets could operate continuously with instant settlement.
The platform addresses appetite for regulated financial markets using distributed ledger technology. LSEG designed the system to enhance connectivity for both institutional and retail participants.
Microsoft and LSEG continue developing additional products, including updates to the Workspace system. The partnership aims to unlock new opportunities for financial market participants.
