London Stock Exchange Group (LSEG) has launched a blockchain-based platform aimed at private funds and completed its first live transaction, a move that seeks to bring tokenization and faster settlement to traditionally slow fund markets.

According to LSEG, the new system — called Digital Markets Infrastructure (DMI) — runs on Microsoft Azure and is designed to handle everything from issuance through to post-trade servicing.

Blockchain: Platform Handles Full Life Cycle

Reports have disclosed that DMI is built to cover the whole lifecycle of an asset. That means issuance, tokenization, distribution, post-trade settlement and servicing can be recorded and tracked on the platform rather than handled only by paper or siloed systems.

The exchange group said the design emphasizes interoperability between distributed ledger technologies and existing financial systems.

Image: EuropaWire

The First Deal And Who Took Part

LSEG said it facilitated its first transaction on the platform on Monday, with MembersCap acting as general partner for a primary fundraise of MCM Fund 1 and Archax serving as nominee.

Based on reports, MembersCap and Archax were onboarded as the first clients and executed the maiden fundraise live on DMI.

Financial outlets noted the transaction as a milestone because it was carried out on a regulated exchange’s blockchain system.

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Author: Christian Encila