{"id":45112,"date":"2026-05-22T03:29:25","date_gmt":"2026-05-22T03:29:25","guid":{"rendered":"https:\/\/www.europesays.com\/britain\/45112\/"},"modified":"2026-05-22T03:29:25","modified_gmt":"2026-05-22T03:29:25","slug":"lseg-looks-to-expand-digital-markets-infrastructure","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/britain\/45112\/","title":{"rendered":"LSEG Looks to Expand Digital Markets Infrastructure"},"content":{"rendered":"

\"LSEG <\/p>\n

London Stock Exchange Group launched its Digital Markets Infrastructure platform for private funds in September last year. Since then the platform has added evergreen funds and partnered with Apex Group automate the full investor lifecycle.<\/p>\n

Dr. Darko Hajdukovic, head of Digital Markets Infrastructure (DMI) at LSEG, told Market Media that the group launched the Digital Markets Infrastructure project because it envisages a world where tokenized assets make capital markets more efficient from issuance, tokenization and distribution to post-trade asset settlement and servicing. The platform is powered by Microsoft Azure to bring blockchain-powered scale and efficiencies for the full asset lifecycle across multiple asset classes.<\/p>\n

On 15 September 2025 LSEG said in a statement that its Digital Markets Infrastructure platform for private funds had completed its first transaction.\u00a0The first transaction involved MembersCap, general partner of MCM Fund 1, executing a primary fundraise with Archax, the UK-based regulated digital asset exchange, acting as nominee for a major web-3 foundation.<\/p>\n

\"\"<\/a><\/p>\n

Darko Hajdukovic, LSEG<\/p>\n

\u201cAt LSEG we are very keen not to create solutions in an ivory tower,\u201d he added. \u201cWe are working very closely with our strategic partners to solve their pain points.\u201d<\/p>\n

Hajdukovic highlighted that distributed ledger technology (DLT) can improve the lengthy issuance process for private funds and the settlement process for transactions which can take up to 40 days.<\/p>\n

\u201cApplying DLT makes settlement programmable, so transactions can be settled at any time,\u201d he added. \u201cClients can choose to\u00a0 take 40 days or settle atomically.\u201d<\/p>\n

Atomic settlement onchain is the simultaneous exchange of assets and payment, often in real-time, with smart contracts ensuring that all the relevant conditions have been met.<\/p>\n

\u201cTo get people excited to adopt DLT technology, we connected the DMI platform to LSEG Workspace terminals, our data business which have 400,000 users,\u201d Hajdukovic added.<\/p>\n

In addition to making private funds more operationally efficient, funds can potentially attract more investors via Workspace. General Partners (GPs), the fund managers, can interact at scale with institutions on a platform they already use, and investors are able to discover, analyse, and access new private market investment opportunities that were previously hard to reach.<\/p>\n

\"\"<\/a><\/p>\n

Source: LSEG<\/p>\n

In February this year LSEG said in a statement it was collaborating with Apex Group, who has $3.5 trillion in\u00a0assets under administration. Apex Group\u2019s global fund servicing infrastructure\u00a0is\u00a0the first service provider to connect with DMI.<\/p>\n

Fund managers serviced by Apex Group will be able to access DMI through Apex Digital Liquidity & Distribution Service (Apex Digital 3.0), a digital custody and distribution platform giving fund managers a single gateway to manage investors at scale. Apex Digital 3.0 links directly into DMI which is fully integrated into LSEG\u2019s Workspace.<\/p>\n

\"\"<\/a><\/p>\n

Peter Hughes, Apex<\/p>\n

Peter Hughes, founder and chief executive of Apex Group,\u00a0said in a statement:\u00a0\u201cPrivate markets have lacked\u00a0the direct\u00a0connectivity and efficient investor aggregation needed to access global pools of capital efficiently. Together with LSEG,\u00a0we\u2019re\u00a0changing that.\u201d<\/p>\n

This\u00a0initial\u00a0phase automates the full investor lifecycle, while\u00a0establishing\u00a0the digital foundation for future blockchain- and AI-enabled connectivity across managers, institutions, and wealth platforms, paving the way for the next generation of private-market infrastructure.<\/p>\n

Hajdukovic described the Apex partnership as \u201cvery important\u201d because LSEG builds resilient infrastructure at scale, and both firms think the private funds industry is ripe for change. In addition to improving the process for onboarding fund investors, DMI will allow investors to trade amongst themselves later this year.<\/p>\n

\u201cWe will be talking to\u00a0 the thousands of funds about hopefully onboarding them onto this primary and secondary platform,\u201d he added. \u201cA lot of funds are interested in joining and the pipeline is growing.\u201d<\/p>\n

The initial launch involved closed-end private funds but the platform has already added evergreen funds.<\/p>\n

\u201cWe will be looking at all the types of funds that can go onto our platform and towards a secondary trading solution,\u201d said Hajdukovic.<\/p>\n

Growth<\/p>\n

Firms expect a material amount of money markets, private and alternative investments, equities, and mutual funds and ETFs to be tokenized within the next five years, according to this year\u2019s Broadridge Digital Transformation & Next-Gen Technology Study.<\/p>\n

\u201cBased on current activity in these markets, however, these ambitious estimates may be too conservative,\u201d said the report. \u201cWhile cybersecurity and potential valuation risks are still top of mind among market participants, changes are happening quickly that are rewriting the conventional financial services playbook in real time.\u201d<\/p>\n

\"\"<\/a><\/p>\n

Source: Broadridge<\/p>\n

However almost half of 947 respondents in the survey, 43%, also said they will need to build an entirely new tech stack in order to thrive in the age of AI. Hajdukovic said LSEG is not waiting for firms to update their technology, but instead, DMI is interoperable with traditional technology used by clients and with any blockchain that they want to use, provided that it is secure and resilient.<\/p>\n

\u201cWe will be thinking about how to apply DLT at scale so people do not have to change everything they are doing,\u201d he added.<\/p>\n

Hajdukovic also highlighted that technology built by LSGE for DMI can be used for other asset classes. For example, in November last year LSEG used the same technology to issue tokenized bonds. He noted hat LSEG transfers ownership of an asset, whether that is a share, bond or private fund, and DLT is a perfect fit across asset classes for this process.<\/p>\n

In November last year LSEG said in a statement that it will build an onchain settlement capability, the\u00a0LSEG Digital Securities Depository (DSD).<\/p>\n

\u201cThe beauty of DSD is that it gives our clients the ability achieve onchain settlement finality as the register on DLT becomes the official, legal ownership of a security,\u201d he added. \u201cThat is very important in a digitally native world.\u201d<\/p>\n

DSD will be fully interoperable, connect traditional and digital markets, support multiple chains, and provide\u00a0seamless interaction between existing settlement platforms and emerging digital infrastructures. Hajdukovic said: \u201cThe DSD will cater for digitally native securities and existing traditional finance securities. We have some very innovative solutions coming.\u201d<\/p>\n

In the U.S. the Depository Trust & Clearing Corporation the central post-trade market infrastructure, has partnered with Canton Network to enable the tokenization of DTC-custodied assets on the blockchain. In addition, Nasdaq and the New York Stock Exchange have applied for regulatory approval to allow investors to trade tokenized stocks on their exchanges.<\/p>\n

\"\"<\/a><\/p>\n

Source: Broadridge<\/p>\n

The Broadridge survey found that 54% of firms are making moderate to large investments in tokenization and digital asset infrastructure, and 53% believe blockchain and DLT will have a dramatic effect on the way assets are settled.<\/p>\n

\u201cPerhaps even more importantly, 55% of firms believe these technologies will create new opportunities across capital markets,\u201d said Broadridge. \u201cWith adoption and investment rising fast, the stage is rapidly being set for a financial marketplace in which firms will need to travel parallel paths and consistently bridge the gap between traditional asset classes<\/p>\n

and trade and settlement functions and new digital workflows.\u201d<\/p>\n

<\/p>\n

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