The London Stock Exchange Group (LSEG) has introduced a new blockchain-based platform for private funds, known as Digital Markets Infrastructure (DMI). The first fund tokenized on this platform is MCM Fund 1, a private reinsurance fund. LSEG aims to extend the DMI to other asset classes in the future.

LSEG has been exploring tokenization for years, with Borsa Italiana and IBM testing a blockchain-based platform for private company shares in 2017. The new DMI follows investments in Nivaura in 2019 and a partnership with Microsoft in 2022 to develop distributed ledger technology further.

Initially announced in 2023, the blockchain-based venue by LSEG was finally launched on September 15, 2024, offering end-to-end services for financial asset lifecycles. The DMI promises blockchain-powered efficiencies for issuance, tokenization, distribution, settlement, and servicing of assets, with plans to expand to other asset classes.

Members Capital Management (MembersCap) issued the first tokenized securities on the DMI platform with MCM Fund 1 using Archax’s multi-chain tokenization engine. Archax acts as a nominee for a major web-3 foundation involved in the issuance, expanding the platform’s reach.

LSEG’s new platform operates on a private, permissioned ledger hosted on Microsoft Azure, with details on the underlying protocol undisclosed. Tokens are non-transferable records controlled by LSEG, offering a centralized approach similar to other digital exchanges. EJF Capital’s funds will be available on DMI soon.

Beyond private funds, DMI documentation lists various suitable fund strategies for private equity, venture capital, real estate, and private debt. LSEG plans to support a broad array of public and private investment products in the future. However, DMI is currently limited to institutional and professional market participants, excluding retail investors and secondary token markets.

Read more at Yahoo Finance: London Stock Exchange Goes On-Chain With First Fundraise Live on New Blockchain Platform