London Stock Exchange Launches Blockchain-Based Digital Markets Platform

The London Stock Exchange Group (LSEG) has launched its blockchain-based Digital Markets Infrastructure (DMI) platform, completing its first live transaction on September 15.

MembersCap, a Bermuda-based investment manager, used the DMI to raise capital for its tokenised MCM Fund 1.
Archax, a regulated digital securities exchange, facilitated the transaction.
The platform, developed with Microsoft, manages the full investment lifecycle using blockchain technology.
LSEG plans to expand the platform to include other asset classes beyond private funds.

Tokenisation Trends in the UK

Tokenization involves creating digital versions of real-world assets, offering benefits like faster settlement and improved liquidity.
The UK is actively developing comprehensive rules for crypto and digital securities.
The Financial Conduct Authority (FCA) supports fund tokenisation as part of its pro-growth strategy.
Grand View Research indicates the UK tokenization market generated $284 million in 2024, projected to reach $929 million by 2030 (CAGR of 18.4%).

LSEG's successful platform launch could boost blockchain adoption in mainstream capital markets.