London Stock Exchange Debuts First Blockchain-Powered Fundraising

The London Stock Exchange (LSEG) 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 LSEG the first major global stock exchange to launch an end-to-end blockchain system.

LSEG Launches Digital Markets Infrastructure Platform for Private Funds, and Facilitates First Transaction https://t.co/4rQIZPbXpv pic.twitter.com/GPlkoJbTn8

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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 Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term.”

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“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,” he said.

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.

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The LSEG has lately been exploring ways to enhance its service. In July, the Financial Times reported that the exchange was considering launching 24-hour stock trading to accommodate growing demand from retail investors who wish to trade outside standard market hours.

According to the Financial Times, the bourse operator is assessing the practical requirements of extended trading, including technological capabilities and regulatory considerations.

LSEG’s interest in around-the-clock trading follows similar moves by major U.S. exchanges, the New York Stock Exchange, Nasdaq, and Cboe Global Markets, which have applied to local regulators to permit extended-hours trading.