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London Stock Exchange Launches Blockchain for Private Funds

London Stock Exchange introduces a blockchain platform for private funds, aiming to expand into other asset classes soon.

  • London Stock Exchange unveils blockchain for private funds
  • MembersCap launches tokenized fund via Archax
  • Platform will support other assets in the future

The London Stock Exchange Group (LSEG) has officially launched its much-anticipated blockchain platform under the name Digital Markets Infrastructure, with an initial focus on private funds. This bold move signals the institution’s serious commitment to blockchain innovation and tokenized finance.

In the platform’s first real-world use case, MembersCap raised capital for its tokenized private fund, MCM Fund 1, using the new infrastructure. This fund represents the transition of traditional assets into digital tokens, offering greater transparency, efficiency, and accessibility.

Tokenized Fund Backed by Archax

A key player in this launch was Archax, a London-regulated digital asset exchange, which acted as the nominee for the fund. By partnering with Archax, LSEG ensured that this blockchain-based operation stayed fully within the bounds of UK financial regulation, bridging the gap between traditional markets and digital assets.

Tokenization enables fractional ownership, quicker settlement, and reduced operational costs—benefits that are becoming increasingly attractive to institutional investors. The successful deployment of this first private fund sets a strong precedent for future digital asset offerings.

Platform Will Expand Beyond Private Funds

Although the initial focus is on private funds, LSEG has confirmed that the platform will soon expand to support other asset classes. This may include public equities, bonds, and structured financial products—potentially reshaping how markets operate globally.

The London Stock Exchange’s move reinforces the financial industry’s growing trust in blockchain technology. As regulatory clarity improves and infrastructure matures, blockchain is no longer seen as just a crypto buzzword, but as a powerful tool for modernizing traditional finance.

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Aurelien Sage

Aurelien Sage is a blockchain enthusiast and writer, crafting insightful articles on decentralized technologies, Web3, and the future of finance. His work simplifies complex concepts, empowering readers to navigate the evolving crypto landscape with confidence.

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