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The London Stock Exchange Group (LSEG) has officially launched its Digital Markets Infrastructure a blockchain powered platform designed to transform private fund management. Developed in collaboration with Microsoft and hosted on Microsoft Azure, the initiative represents a significant entry into digital asset markets by one of the world’s most established exchange operators.
The Digital Markets Infrastructure supports the full lifecycle of digital assets from issuance and tokenization to post trade settlement creating a bridge between traditional capital markets and blockchain networks.
The first live deployment of Digital Markets Infrastructure enabled capital management firm MembersCap to raise funds for its tokenized MCM Fund 1. The transaction facilitated by FCA regulated digital exchange Archax marked the inaugural real world use of the system.
Initially focused on private markets, Digital Markets Infrastructure allows general partners and professional investors to discover and engage with opportunities directly through LSEG’s Workspace system. LSEG sees tokenization as a way to improve access to historically opaque and illiquid private investments.
“Today’s private market processes are ripe for innovation,”said Darko Hajdukovic, LSEG’s Head of Digital Markets Infrastructure.
“There’s a growing appetite for an end to end, interoperable, regulated financial markets DLT infrastructure.”
Tokenization converting traditional financial assets into blockchain based tokens has been gaining traction among banks, asset managers and infrastructure providers. Proponents argue that platforms like Digital Markets Infrastructure can deliver faster settlement, fractional ownership and improved transparency.
Microsoft’s Bill Borden, VP of Worldwide Financial Services, described the partnership as reshaping global finance:
“Digital Markets Infrastructure has the potential to unlock new client opportunities and modernize investment workflows.”
Archax, MembersCap and the Cardano Foundation are among the first to pilot the system placing Digital Markets Infrastructure within a growing trend of legacy exchanges adopting blockchain frameworks.
A recent report by Animoca Brands suggests tokenized real world assets (RWAs) could eventually unlock a $400 trillion traditional finance market. Analysts Andrew Ho and Ming Ruan highlighted private credit, treasury debt, commodities, equities, alternative funds and bonds as key segments.
According to the 2025 Skynet RWA Security Report, tokenized assets may expand to $16 trillion by 2030. Tokenized U.S. Treasuries alone are projected to hit $4.2 billion this year driven by demand for short term government bonds.
With Digital Markets Infrastructure, the London Stock Exchange Group joins a growing list of global financial institutions seeking to merge TradFi with blockchain based solutions. As tokenization matures, the platform could become a critical hub for connecting institutional capital to digital asset innovation.
