Key Notes
- LSEG completes the first transaction on its new blockchain-based platform.
- DMI targets private funds first, with plans to expand into other asset classes.
- The UK’s tokenisation market is projected to triple by 2030.
The London Stock Exchange Group (LSEG) has reportedly launched its blockchain-based Digital Markets Infrastructure (DMI) platform.
The group confirmed on September 15 that the platform completed its first live transaction.
MembersCap, a Bermuda-based investment manager, was the first to use DMI to raise capital for its tokenised MCM Fund 1. Archax, a Financial Conduct Authority–regulated digital securities exchange, acted as a nominee for the transaction.
The DMI platform is developed in partnership with Microsoft. It is designed to handle the entire lifecycle of an investment, from issuance to post-trade settlement and ongoing servicing, entirely on blockchain rails.
Initially focused on private funds, LSEG has hinted at its plan to broaden the platform’s scope to include other asset classes in the future. According to Bloomberg, the group aims to make private market transactions more efficient and transparent by using blockchain technology.
Tokenisation Gains Traction Across the UK
Tokenization is the process of creating digital representations of real-world assets such as stocks, bonds, or loans. The sector is quickly gaining attention among global regulators and institutional investors due to faster settlement, improved liquidity, and fractional ownership.
Nasdaq’s recent SEC filing highlights how tokenized securities can integrate into traditional markets while preserving investor protections.
However, challenges remain around regulation, valuation, and market structure.
The UK has emerged as a particularly active hub for these developments. The financial regulators have been working on comprehensive rules for crypto and digital securities.
The Financial Conduct Authority (FCA) has explicitly incorporated fund tokenisation into its pro-growth strategy, signalling strong regulatory support. Data from Grand View Research estimates that the UK tokenization market generated around $284 million in revenue in 2024.
According to the research firm’s analysis, the country’s tokenization market is expected to reach about $929 million by 2030. This represents a compound annual growth rate (CAGR) of roughly 18.4%.
If LSEG’s new platform proves successful, it could increase the blockchain adoption in the mainstream capital markets.
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A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
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Source: https://www.coinspeaker.com/lseg-blockchain-platform-private-funds/
