The London Stock Exchange Group has started a new blockchain platform for private funds. This makes it the first big stock exchange in the world to launch such a system.
The platform is called Digital Markets Infrastructure, or DMI. It is designed to handle the whole process of digital assets. This means it can manage everything from creating and issuing tokens to recording and completing trades after they happen.
According to the release, the system was built with Microsoft and runs on Microsoft Azure. The goal is to connect modern blockchain systems with the traditional finance world so both can work together.
Private funds are the first type of asset available on the new platform, but the exchange said more asset types will be added later. With DMI, private funds can also be found by users of Workspace. This makes it easier for general partners, who manage the funds, to connect with professional investors.
The first clients to use the system are MembersCap, a capital management company, and Archax, a crypto exchange based in London that is regulated by the Financial Conduct Authority. MembersCap carried out the first transaction on the platform, while Archax acted as a nominee for the Cardano Foundation.
Microsoft described the project as proof of its strong partnership with the London Stock Exchange.
Bill Borden, vice president of worldwide financial services at Microsoft, said, “Together, we’re reshaping the future of global finance to empower our customers to unlock new opportunities and drive meaningful change.”
LSEG’s head of digital markets infrastructure, Darko Hajdukovic, also explained that private markets today are “ripe for innovation.” He also said there is a strong need for “an end-to-end, interoperable, regulated financial markets DLT infrastructure.”
Experts believe this project may help bring traditional finance and decentralized finance closer together. Nelli Zaltsman, head of blockchain payments innovation at JPMorgan’s Kinexys, said, “Our goal has always been to find the best way to work with the public blockchain, regulatory environment permitting.”
Speaking at the RWA Summit in Cannes, she noted that blockchain incentives from large financial firms could bring these two worlds together sooner than expected. Earlier this year, JPMorgan tested settlement technology with Chainlink, showing how blockchain deposits could complete transactions across different blockchains at the same time.
Also Read: Galaxy Digital Buys $306M in Solana Amid Crypto Treasury Push
