The London Stock Exchange Group (LSEG) has rolled out a blockchain-powered platform designed to enhance access to private funds, in a move that underscores growing momentum for digitalisation in private markets, Bloomberg reports.

LSEG’s Digital Markets Infrastructure was first used by investment firm MembersCap to raise capital for its tokenised vehicle, MCM Fund 1. The fundraising process was facilitated by Archax, a London-based regulated digital securities exchange, which acted as nominee.

By introducing blockchain technology, LSEG aims to streamline processes in private markets, enabling faster settlement, improved liquidity, and broader investor access through fractional ownership. While the platform currently focuses on private funds, the exchange operator plans to expand to other asset classes over time.

Tokenisation, the process of creating digital representations of assets such as bonds, loans, or equities, has gained traction among regulators and institutional players as a potential game changer for capital markets. However, the tokenised fund industry remains relatively small compared to the trillions of dollars invested in mutual funds and ETFs.

The launch marks a significant step for LSEG as it positions itself at the forefront of applying blockchain to private capital markets, an area increasingly viewed as ripe for transformation.

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