The London Stock Exchange Group (LSEG) has completed its first transaction using a blockchain-powered system, marking the launch of its new digital markets infrastructure.
The system was used by reinsurance asset manager MembersCap to raise capital for its latest private fund, according to LSEG.
This development comes as financial institutions continue to explore blockchain technology to streamline the issuance, trading, and settlement of financial assets. LSEG is the first major global stock exchange to implement a fully integrated blockchain-based platform, covering the entire process from issuance to trading and settlement.
“We’re not talking here about cryptocurrencies, this is a completely different proposition, this is applying that technology to capital market transactions,” said Darko Hajdukovic (pictured above), head of digital markets infrastructure at LSEG, as per the Financial Times.
He noted that while blockchain originated in the cryptocurrency sector, mainstream financial firms are now adopting it to improve efficiency in handling stocks, bonds, and other assets.
For private markets, Hajdukovic described the current process as “very manual, it’s very costly, it sometimes takes up to 40-50 days for settlement.” He said LSEG’s new system aims to modernize this infrastructure and reduce settlement times.
LSEG indicated that while the initial focus is on private funds, the platform will expand to include other asset classes in the future.
Blockchain technology enables the “tokenization” of assets, creating digital tokens that record and track ownership and transaction history. The reinsurance sector is seeing a wave of blockchain adoption.
Oxbridge Re and its subsidiary SurancePlus, a major player in the niche space, reported higher net premiums earned in the second quarter and first half of 2025, but also wider losses due to hurricane impacts and increased expenses, including tokenization costs at its Web3 subsidiary.
Earlier this year, Oxbridge Re expanded its tokenized reinsurance investment offerings through SurancePlus, launching two structured options targeting 20% and 42% annual returns, respectively.
The broader reinsurance market is also experiencing growth in alternative capital, including tokenized solutions. As of June 30, global reinsurance capital reached a new high of approximately US$735 billion, with alternative capital setting a record at US$121 billion.
Catastrophe bond volume rose to US$54 billion, an almost 20% year-over-year increase, reflecting growing interest in alternative and tokenized reinsurance products.
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