London Stock Exchange Group PLC (LSE:LSEG) has executed its first deal on a blockchain-based platform, becoming the first major global exchange to run a fully digital system for issuing, trading and settling assets.
The debut transaction was carried out by reinsurance asset manager MembersCap, which used the system to raise capital for a new private fund.
Unlike cryptocurrencies, this platform applies blockchain to capital markets, creating digital “tokens” that represent assets such as shares, bonds and funds.
These tokens provide a secure and easily traceable record of ownership. Darko Hajdukovic, LSEG’s head of digital markets, said the new infrastructure could cut settlement times in private markets from up to 50 days to just seconds.
Developed with Microsoft, which owns a 4% stake in LSEG, the system will initially support private funds before expanding to other asset classes. LSEG also plans to integrate fundraising visibility into its Workspace platform.