London Stock Exchange Launches Blockchain Platform for Tokenized Funds
- LSEG debuts blockchain infrastructure for tokenized private funds
- Platform supports issuance and settlement within regulatory rules
- RWA Tokenization Could Reach $30 Trillion by 2034
The London Stock Exchange Group (LSEG) announced the launch of a blockchain-based platform focused on the issuance and settlement of tokenized assets, starting with the private equity sector. The initiative reinforces the advancement of tokenization within traditional finance, aiming to integrate onchain technology into already regulated processes.
The so-called Digital Markets Infrastructure (DMI) was built on the Microsoft Azure cloud and aims to enable private market issuers to create and manage tokenized instruments without leaving the regulatory scope. According to release , the MembersCap manager has already used the system to raise capital for the Tokenized MCM Fund 1, with Archax, an authorized broker in London, acting as an intermediary.
Dr. Darko Hajdukovic, Head of DMI at LSEG, highlighted the benefits of the technology:
“There are many processes in private markets today that can be improved.”
For him, tokenization can reduce administrative costs, improve access, and offer continuous liquidity, with trading available 24/7.
Global asset management firms have already been exploring this movement. BlackRock and Franklin Templeton offer blockchain-based money market funds, distributing billions of dollars on networks like Ethereum. LSEG's advancement represents a significant expansion of this concept, creating an institutional environment for digital assets in the UK.
In parallel, Nasdaq filed an application with the SEC that will allow trading of tokenized securities alongside traditional stocks on the same order book. If approved, the model could be implemented starting in 2026, paving the way for greater integration between digital and traditional markets.
Despite these innovations, banks like JPMorgan warn that the adoption of real-world assets is still slower than expected, with challenges in achieving global scale. Even so, analysts at Standard Chartered project that the tokenized RWA sector could reach $30 trillion by 2034.
Recent data indicates that protocols and products linked to RWAs have already accumulated more than US$13 billion in total locked value, confirming the gradual expansion of tokenization in the financial market.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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