Key Takeaway: London Stock Exchange Group becomes the first major exchange to deploy end-to-end blockchain infrastructure for traditional asset trading.
The London Stock Exchange Group (LSEG) made financial history on September 15, 2025, by launching its Digital Markets Infrastructure (DMI) platform, the first blockchain-powered ecosystem developed by a major global stock exchange for traditional asset trading.
The Microsoft Azure-powered platform completed its inaugural transaction with investment manager MembersCap, which successfully executed a primary fundraise for its tokenized MCM Fund 1. This milestone marks a pivotal moment in the convergence of traditional finance and blockchain technology.
Platform Delivers End-to-End Blockchain Solutions
The DMI platform provides comprehensive blockchain-enabled infrastructure across the complete asset lifecycle, from issuance and tokenization through distribution to post-trade settlement and servicing. Built through LSEG’s strategic partnership with Microsoft, the system integrates seamlessly with the existing Workspace infrastructure.
“There are many processes in private markets today that can be improved,” stated Dr. Darko Hajdukovic, Head of Digital Markets Infrastructure at LSEG. He further included, “We are committed to significantly improving access to private markets by streamlining workflows, enhancing distribution, and enabling liquidity.”
The platform enables General Partners to interact with professional investors on familiar infrastructure while discovering previously hard-to-reach private market investment opportunities.
First Clients Achieve Historic Milestones
MembersCap, the Bermuda-regulated investment manager, achieved distinction as the platform’s inaugural user. The firm’s MCM Fund 1, launched in July 2025, represents the first tokenized institutional-grade reinsurance investment fund, designed to bridge institutional reinsurance and blockchain-based finance.
Digital asset exchange Archax served as a nominee for a major web3 foundation in this groundbreaking first trade. EJF Capital has also been onboarded as an early adopter, with several funds expected to launch on the platform shortly.
Massive Market Growth Drives Adoption
The DMI launch coincides with explosive growth in global asset tokenization markets. Industry analysts project the tokenized asset market will surge from $0.6 trillion today to $18.9 trillion by 2033, representing a compound annual growth rate of 53%.
Tokenized U.S. Treasury products alone have surpassed $7.4 billion by mid-2025, reflecting an 80% year-to-date increase. This growth stems from institutional demand for on-chain yield opportunities and instant settlement collateral across diverse asset classes.
Strategic Foundation Built Over Years
LSEG’s blockchain journey began in September 2023, when the exchange first announced plans for a blockchain-based digital assets business. The initiative builds upon LSEG’s landmark 10-year partnership with Microsoft, announced in December 2022, involving a minimum cloud-related spending of $2.8 billion.
Microsoft’s collaboration with LSEG on its Digital Markets Infrastructure is a powerful example of the innovation driving our strategic partnership,” commented Bill Borden, Corporate Vice President of Worldwide Financial Services at Microsoft. He further remarked, “Together, we’re reshaping the future of global finance.”
Previous Private Market Initiatives
The exchange previously demonstrated commitment to private markets through its March 2022 strategic investment in Floww, a platform connecting investors with private companies. LSEG has also been developing its Private Securities Market using the UK Government’s PISCES regulatory framework, scheduled to launch later this year.
Industry-Wide Blockchain Transformation
LSEG joins other major financial institutions embracing blockchain infrastructure. JPMorgan Chase has developed blockchain-based digital deposit tokens for international settlements, while Swift completed blockchain interoperability pilots to unlock tokenization capabilities.
Research suggests tokenization could generate annual savings of $20 billion in global clearing and settlement costs, highlighting the technology’s transformative potential for financial markets infrastructure.
Future Expansion Plans
While private funds represent the initial focus, LSEG plans to expand DMI to additional asset classes as the operating model proves successful. The platform’s open and interoperable architecture connects global market participants within a trusted, regulated environment.
The initiative addresses growing demand for improved private market access, enhanced liquidity, and operational efficiency. Traditional private market processes have historically suffered from limited reach, fragmented procedures, and barriers to capital raising.
Market Impact and Implications
The successful DMI launch represents a watershed moment for institutional blockchain adoption, demonstrating how traditional financial infrastructure can evolve through strategic technology partnerships while maintaining regulatory compliance and operational security standards.
This development positions LSEG at the forefront of financial innovation, potentially influencing other major exchanges to accelerate their own blockchain initiatives. The platform’s success could catalyze broader institutional adoption of tokenized assets and blockchain-based settlement systems.
The London Stock Exchange Group’s Digital Markets Infrastructure platform establishes new precedents for blockchain integration in traditional finance, marking September 15, 2025, as a historic date in financial markets’ evolution.
Sources: Reuters, Bloomberg, Yahoo Finance