London Stock Exchange holds first blockchain-based fundraising
London Stock Exchange Group (LSEG) has completed its first fundraising through its in-house blockchain system, Digital Markets Infrastructure.
The pilot involved asset manager MembersCap, which used LSE’s infrastructure to raise funds for the MCM Fund 1. Regulated platform Archax acted as the nominee holder of the tokenized securities.
The system covers the full cycle – from issuance to settlement – unlike earlier projects limited to certain stages. According to LSE head of digital markets Darko Hajdukovic, existing processes in private markets are “very costly and can take up to 40–50 days,” while blockchain enables settlements in seconds.
The system covers the full cycle – from issuance to settlement – unlike earlier projects limited to certain stages. According to LSE head of digital markets Darko Hajdukovic, existing processes in private markets are “very costly and can take up to 40–50 days,” while blockchain enables settlements in seconds.
Microsoft, which has owned a 4% stake in the exchange group since 2022, partnered with LSE in the project’s development. The two companies are also collaborating on Workspace – a competitor to Bloomberg Terminal – where investors will now be able to track new funds launched on the blockchain platform.
The key focus is on tokenization, meaning the issuance of digital representations of traditional assets such as stocks, bonds, loans or funds. This approach simplifies access to investments, boosts liquidity, and enables fractional ownership, expanding the pool of potential investors.
Although the tokenized asset market remains small compared with the trillions in traditional funds and ETFs, interest in the technology is growing. One of its strongest advocates is BlackRock CEO Larry Fink, who calls tokenization a “revolution in investing.”
The launch makes LSE the first global exchange to implement a full blockchain system for capital raising. The company now plans to expand use of the infrastructure beyond private funds to other asset classes.
The key focus is on tokenization, meaning the issuance of digital representations of traditional assets such as stocks, bonds, loans or funds. This approach simplifies access to investments, boosts liquidity, and enables fractional ownership, expanding the pool of potential investors.
Although the tokenized asset market remains small compared with the trillions in traditional funds and ETFs, interest in the technology is growing. One of its strongest advocates is BlackRock CEO Larry Fink, who calls tokenization a “revolution in investing.”
The launch makes LSE the first global exchange to implement a full blockchain system for capital raising. The company now plans to expand use of the infrastructure beyond private funds to other asset classes.
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