Members Capital Management Limited (MembersCap), the Bermuda-regulated investment manager that seeks to bring reinsurance investing to a wider audience leveraging digital ledger technology, has become the first company to utilise the London Stock Exchange Group’s new Digital Markets Infrastructure (DMI) platform.MembersCap completed the investment of its initial portfolio through its fund, MCM Fund I .It is the first tokenised institutional-grade reinsurance investment fund and is designed to open new capital channels to both digital asset investors and traditional allocators.The MCM Fund I was launched on the Archax digital asset exchange, which MembersCap said .

This morning it has become clear that MembersCap also broke new ground in another way with its innovative reinsurance fund launch, which is effectively a tokenised insurance-linked securities (ILS) strategy.The London Stock Exchange Group (LSEG) announced this morning that it has launched its Digital Markets Infrastructure (DMI) platform for private funds and that the platform has already facilitated its first transaction.It transpires that MembersCap is that first private fund manager to use this DMI platform at the London Stock Exchange.

LSEG explained, “MembersCap and Archax have been onboarded as the first clients to the platform and the first transaction has been facilitated with MembersCap, as the General Partner of MCM Fund 1, successfully executing a primary fundraise with Archax acting as nominee for a major web-3 foundation.” “We’re delighted to be partnering with LSEG and Archax to deliver first-of-its-kind access to the global private reinsurance market,” Dr Benjamin Fox, Co-Founder and Chief Investment Officer at MembersCap explained to Artemis.“By allowing tokenized investments to be made into our flagship MCM Fund I, we are bringing a traditional asset class with historical high barriers of entry to a brand new cohort of qualified investors.Reinsurance returns are no longer considered the sole preserve of large, traditional institutional portfolios, and in recent years, alternative sources of risk premia have begun permeating the portfolios of non-traditional sophisticated investors.

And at the same time, we are witnessing the extraordinary propagation of digital assets across most areas of society.At MembersCap we are proud to be contributing to both of these secular shifts by affording a fully on-chain experience for digitally native investors, and, in doing so, we are unlocking completely new sources of risk capital for the reinsurance market.” Jeremy Williams, Head of Digital Strategy and Compliance, MembersCap, also told us that, “LSEG’s Digital Markets Infrastructure lets qualified investors make informed choices—and lets us run a tighter, data-driven allocation process.It turns access into a two-way transparent workflow: discovery, suitability, onboarding and ongoing reporting on regulated rails.

In a world where many yield generating mechanics are a black box, the DMI furthers our mission to widen access to auditable, tokenised ownership of understandable real world assets.With Archax and Apex alongside LSEG’s DMI, investors can see clearly what they own, how it performs, and why — and we can admit and serve the right capital with greater confidence.It’s been a fantastic experience working with the DMI team, and the journey is just beginning.” The DMI at the LSEG is a Microsoft Azure powered platform designed to deliver, “blockchain-powered scale and efficiencies for the full asset lifecycle – from issuance, tokenisation and distribution to post trade asset settlement and servicing, across multiple asset classes,” the LSEG explained.

It’s designed to be interoperable with both legacy and on-chain or distributed ledger finance platforms and solutions, and sees the LSEG positioning itself “to support customers across the full funding continuum.” Private funds is the first asset class to be able to use the DMI platform and it’s intriguing to see that a reinsurance focused ILS fund is the first to transact using it.LSEG explained that, “private funds admitted to DMI will be discoverable by Workspace’s users as part of their day-to-day workflow, enabling General Partners to interact at scale with professional investors on a platform these investors already use, and they in turn will be able to discover, analyse, and access new private market investment opportunities that were previously hard to reach.” Dr.Darko Hajdukovic, Head of Digital Markets Infrastructure, LSEG, explained, “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, added “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.” MembersCap continues to break new ground with its tokenised fund approach to reinsurance and ILS investing, not just opening the asset class up to new capital allocators, such as raising capital from this unnamed major web-3 foundation, but also now becoming the very first to use this new London Stock Exchange technology platform as well. ..

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.