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London Stock Exchange Drives Digital Funding for London Construction

September 15, 2025
The London Stock Exchange Group (LSEG) has completed its first fully blockchain powered fundraising transaction, marking a major step in modernising capital markets in the UK.

The digital infrastructure was used by reinsurance asset manager MembersCap to raise funds for its latest private investment fund. The system enables the issuance, trading and settlement of financial assets entirely on blockchain, making processes faster, cheaper and more transparent.

LSEG is the first major global exchange to implement a complete blockchain powered system, surpassing other initiatives that have only partially digitised the process. Transactions that once took 40–50 days for settlement in private markets can now be executed in a fraction of the time, with full transparency and traceable ownership.

For property and construction developers in London, this development could be transformative. Tokenisation of funds and assets allows real estate projects to attract a wider pool of investors efficiently. Capital for new developments, whether residential or commercial, can now be raised more quickly, potentially reducing financing bottlenecks that have slowed project delivery in the city.

The system also integrates with LSEG’s Workspace platform, giving fundraisers visibility to thousands of potential investors. Over time, the infrastructure is expected to expand beyond private funds to other asset classes, creating broader opportunities for investment in London’s construction sector.

Developers and investors looking to fund major projects could benefit from reduced costs, faster transactions, and enhanced access to capital, addressing long-standing hurdles in property finance. With blockchain now entering mainstream finance, the London construction market may see a new era of liquidity and investment efficiency.

Dr. Darko Hajdukovic, Head of Digital Markets Infrastructure, LSEG, said: “There are many processes in private markets today that can be improved. At LSEG we are committed to significantly improving access to private markets, by streamlining workflows, enhancing distribution, and enabling liquidity. We intend to do this by continually working with all stakeholders to enhance efficiencies and connectivity for both digitally-native and traditional assets. The onboarding of our first clients and this first transaction are significant milestones, demonstrating the appetite for an end-to-end, interoperable, regulated financial markets DLT infrastructure. LSEG’s position as a convener of markets can bring significant scale to digital assets and effect real change.” 

Bill Borden, Corporate Vice President, Worldwide Financial Services, Microsoft, said: "Microsoft’s collaboration with LSEG on its Digital Markets Infrastructure (DMI) is a powerful example of the innovation driving our strategic partnership. Together, we’re reshaping the future of global finance to empower our customers to unlock new opportunities and drive meaningful change.”