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London Stock Exchange Turns to Blockchain in Its First Deal to Streamline Fundraising


The London Stock Exchange has completed its first
blockchain-powered transaction, marking the launch of its new digital markets
platform. According to the exchange’s announcement on Monday, asset
manager MembersCap used the system to raise money for its latest private fund.

A First for Global Exchanges

The Digital Markets Infrastructure (DMI), developed
with Microsoft, reportedly handled the full fundraising process from issuance
to settlement. This makes LSE the first major global stock exchange to launch
an end-to-end blockchain system.

Dr. Darko Hajdukovic, the Head of Digital Markets Infrastructure, LSEG, commented: “At LSEG, we are committed to significantly improving access to private markets by streamlining workflows, enhancing distribution, and enabling liquidity.

“The onboarding of our first clients and this first
transaction are significant milestones, demonstrating the appetite for an
end-to-end, interoperable, regulated financial markets DLT infrastructure.”

LSEG has welcomed blockchain technology, citing its ability to reduce costs and speed up settlement. Additionally, the technology allows
assets to be tokenized, creating digital records of ownership and transfers.

Microsoft Partnership and Market Reach

The DMI runs on Microsoft Azure. The partnership
follows Microsoft’s purchase of a 4% stake in LSEG in 2022. The system
integrates with Workspace, LSEG’s data and analytics platform, making
fundraising activity visible to professional investors.

MembersCap and digital asset exchange Archax were reportedly
the first clients onboarded. Archax acted as a nominee for the Cardano Foundation
in the debut deal. Private funds are the first asset class supported by
the DMI. However, LSEG said it plans to expand to additional asset classes over
time.

Expect ongoing updates as this story evolves.

The London Stock Exchange has completed its first
blockchain-powered transaction, marking the launch of its new digital markets
platform. According to the exchange’s announcement on Monday, asset
manager MembersCap used the system to raise money for its latest private fund.

A First for Global Exchanges

The Digital Markets Infrastructure (DMI), developed
with Microsoft, reportedly handled the full fundraising process from issuance
to settlement. This makes LSE the first major global stock exchange to launch
an end-to-end blockchain system.

Dr. Darko Hajdukovic, the Head of Digital Markets Infrastructure, LSEG, commented: “At LSEG, we are committed to significantly improving access to private markets by streamlining workflows, enhancing distribution, and enabling liquidity.

“The onboarding of our first clients and this first
transaction are significant milestones, demonstrating the appetite for an
end-to-end, interoperable, regulated financial markets DLT infrastructure.”

LSEG has welcomed blockchain technology, citing its ability to reduce costs and speed up settlement. Additionally, the technology allows
assets to be tokenized, creating digital records of ownership and transfers.

Microsoft Partnership and Market Reach

The DMI runs on Microsoft Azure. The partnership
follows Microsoft’s purchase of a 4% stake in LSEG in 2022. The system
integrates with Workspace, LSEG’s data and analytics platform, making
fundraising activity visible to professional investors.

MembersCap and digital asset exchange Archax were reportedly
the first clients onboarded. Archax acted as a nominee for the Cardano Foundation
in the debut deal. Private funds are the first asset class supported by
the DMI. However, LSEG said it plans to expand to additional asset classes over
time.

Expect ongoing updates as this story evolves.





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