- The platform, Digital Markets Infrastructure, aims to enhance liquidity and investor access to private market investments.
- UK and EU regulators balance digital asset innovation with investor protection and market trust.
The London Stock Exchange Group (LSEG) announced the launch of Digital Markets Infrastructure (DMI), a blockchain-based platform for private funds. Powered by Microsoft Azure, the system is expected to bring efficiency to the full lifecycle of digital assets, including tokenization, issuance, and post-trade settlement.
According to LSEG, the DMI is designed to ensure interoperability between distributed ledger technology and conventional financial systems. This blockchain is part of LSEG’s goal to serve clients across the ‘full funding continuum.’
Private funds are expected to be the first asset class available on DMI. Early users of this blockchain are MembersCap and FCA-regulated exchange Archax, who have executed the debut transaction for the Cardano Foundation.
Dr. Darko Hajdukovic, Head of Digital Markets Infrastructure, LSEG, shared in a statement, “There are many processes in private markets today that can be improved. At LSEG we are committed to significantly improving access to private markets, by streamlining workflows, enhancing distribution, and enabling liquidity.”
This initiative is expected to bridge traditional finance and blockchain innovation, accelerate convergence with decentralized finance, and expand access to the previous investment opportunities.
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Regulation Meets Tokenization
UK regulators such as the Financial Conduct Authority are actively shaping the policies for digital assets and tokenized markets. Recently, FCA approved Archax, a global digital assets exchange, in a move signaling openness to blockchain in regulated finance.
The EU’s Markets in Crypto-Assets (MiCA) regulation provides a harmonized framework for digital assets across member states, offering clarity on custody, issuance, and trading. Together, these policies aim to balance digital assets innovation with trust.
