The London Stock Exchange Group has unveiled its new infrastructure platform on digital markets, a system based on blockchain designed to modernize the way in which private funds are issued, exchanged and maintained. Developed in collaboration with Microsoft and hosted on Microsoft Azure, the platform aims to provide greater efficiency, transparency and scalability to the entire life cycle of the active assets of the emission and tokenization initials to the distribution, regulation and continuous maintenance.
This launch marks an important step in the wider LSEG strategy to become the first world exchange group to support customers through the full financing continuum. Although private funds are the first asset class to be put online on the platform, LSEG plans to extend its use to other asset classes in the future.
The system is designed to be open and interoperable, which means that it can work alongside existing large book technology solutions and traditional financial systems.
By integrating with the LSEG workspace platform, the DMI system allows private funds to be visible for professional investors as part of their daily workflow. This allows general partners to connect more easily with a wider pool of potential investors, while giving these investors rationalized access to opportunities that have historically been difficult to discover and assess.
The first customers of the platform include membersCAP and Archax. The inaugural transaction has seen Cembrecap, acting as a general partner of MCM Fund 1, carrying out a primary fundraising, Archax being the candidate for a large web3 foundation. EJF Capital also joined the first adopter, with several of its funds which should be available on the platform soon.
The use by LSEG of Microsoft Azure ensures that the platform benefits from high levels of safety, resilience and scalability. The design supports innovation while maintaining the regulatory and operational standards required in the global financial markets. By connecting participants from the entire international investment community, the DMI platform aims to expand distribution, increase liquidity and promote a trusted environment for the increase in capital and the maintenance of assets.
Key quotes:
“Today there are many processes on the private markets that can be improved. At LSEG, we are committed to considerably improving access to private markets, rationalizing workflows, improving distribution and allowing liquidity. We intend to do so by working continuously with all stakeholders to improve efficiency and connectivity for digital kilometers. A DLT infrastructure of regulated and interoperable financial markets.
Dr Darko Hajdukovic, head of digital market infrastructure, LSEG
“Microsoft’s collaboration with LSEG on its infrastructure on digital markets (DMI) is a powerful example of innovation stimulating our strategic partnership. Together, we re -watch the future of global finance to allow our customers to unlock new opportunities and lead a significant change. ”
Bill Borden, company vice-president, Worldwide Financial Services, Microsoft
