The London Stock Exchange Group (LSEG) has made history by launching a blockchain-powered platform for private funds, becoming the first major global exchange to adopt this technology at scale. The platform, called Digital Markets Infrastructure (DMI), is built with Microsoft and runs on Microsoft Azure, enabling the full lifecycle of digital assets—from issuance and tokenization to settlement.

LSEG says the system bridges blockchain networks with traditional finance, part of its broader goal to become the first global exchange supporting clients across the entire “funding continuum.” Private funds are the first asset class to launch on the system, with plans to expand into additional categories. Investors using Workspace will now be able to discover and interact with private funds directly through the new infrastructure.

The debut transaction on DMI was conducted by capital management firm MembersCap, with Archax, a London-based FCA-regulated crypto exchange, acting as nominee for the Cardano Foundation. This marks a significant milestone in uniting regulated financial institutions with blockchain ecosystems.

Microsoft highlighted the collaboration as a landmark example of innovation in finance. Bill Borden, corporate vice president of financial services at Microsoft, said the partnership is “reshaping the future of global finance” and unlocking new opportunities for investors.

According to Darko Hajdukovic, LSEG’s head of digital markets infrastructure, the initiative will enhance efficiency, liquidity, and investor access to private capital markets, long seen as limited and opaque. The project is also seen as a catalyst for bridging traditional finance and decentralized finance (DeFi).

Industry leaders believe the move could accelerate mainstream adoption of blockchain in regulated markets. JPMorgan’s blockchain innovation head, Nelli Zaltsman, noted that global banks are increasingly exploring public blockchain integrations, while Chainlink co-founder Sergey Nazarov emphasized cross-chain interoperability as the next frontier.

This bold move by the London Stock Exchange signals that the convergence of traditional finance and blockchain may be arriving faster than anyone expected.