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LSEG Debuts Blockchain Platform for Private Fund Trading

Key Takeaways

  • ​LSEG has launched a blockchain-based system, DMI, to manage private investment funds from issuance to settlement;
  • Built with Microsoft and hosted on Azure, DMI connects blockchain tools with existing financial systems;
  • Private funds are the first asset type on DMI, with firms like MembersCap and Archax already conducting transactions.

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LSEG Debuts Blockchain Platform for Private Fund Trading

The London Stock Exchange Group (LSEG) has rolled out a new digital system that uses blockchain technology to support the management of private investment funds.

Known as the Digital Markets Infrastructure (DMI), the platform is designed to cover all major stages of the digital financial assets, from issuing and tokenizing investments to settling trades after they occur.

Built in collaboration with Microsoft, the system runs on the Azure cloud platform.

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Rather than replace traditional financial tools, the system is meant to work alongside them. It acts as a bridge between distributed ledger technology (DLT) and current market systems, which provides a solution for companies and investors across all funding stages.

The first type of assets to be made available through DMI are private funds. These funds will be searchable within LSEG’s Workspace platform.

Two firms were among the first to use the new setup: MembersCap, a capital management company, and Archax, a UK-regulated crypto exchange. The very first transaction was carried out by MembersCap, with Archax acting on behalf of the Cardano ADA $0.8590 Foundation.

Bill Borden, a senior executive at Microsoft, noted that this project highlights how the two companies are collaborating to update the global financial system and give users more options and flexibility.

Darko Hajdukovic, who leads the digital infrastructure unit at LSEG, explained that LSEG aims to improve how capital markets operate.

Recently, dYdX, a decentralized exchange (DEX), announced plans to launch trading via Telegram. How does it work? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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