Yuan’s comments come after the London Stock Exchange Group (LSEG) on Tuesday unveiled a blockchain-based platform for private funds, the first such system introduced by a major global stock exchange.
“LSEG’s launch of its blockchain-powered Digital Markets Infrastructure is a significant milestone for global capital markets, demonstrating how tokenisation can streamline processes, enhance transparency and unlock liquidity, especially in traditionally opaque private markets,” Yuan told InvestorDaily.
LSEG’s Digital Market Infrastructure (DMI) is built on Microsoft Azure and supports the full life cycle of digital assets, from issuance and tokenisation to post-trade settlement.
Bermuda-based asset manager MembersCap and the UK’s first FCA-regulated digital asset exchange, Archax, became the first clients onboarded on the new platform, completing an initial fundraise for MCM Fund 1, while global hedge fund EJF Capital has also signed on as an early adopter.
While initially kicking off with private funds, LSEG’s DMI plans to include more asset classes.
LSEG head of digital markets infrastructure, Dr Darko Hajdukovic, said improving access to private markets is the priority.
“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,” Hajdukovic said.
“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…”
The global real-world asset tokenisation market increased from US$8.6 billion to US$24.3 billion from May to August 2025.
The closest parallels to LSEG’s initiative in Australia are Project Acacia and smaller pilots by fintechs and custodians, with Acacia in particular aiming to transform finance by putting digital representations of real-world assets on distributed ledgers.
The joint initiative by the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre (DFCRC) involves 19 pilot use cases and five proof-of-concept cases, from local fintechs to major banks, including Zerocap.
Yuan said the hands-on pilot will provide invaluable insights into how tokenisation can enhance efficiency, transparency and accessibility in Australian capital markets.
“Zerocap is proud to be one of the lead private sector participants in Project Acacia … We’re in the active development and testing phase with a focus on scale and regulatory alignment,” Yuan said.
“Embracing tokenisation places Australia in a competitive position to attract global capital, while providing local investors with new opportunities and a more efficient market infrastructure,” he said.
The DFCRC estimates tokenisation could inject AU$19 billion annually – approximately 1 per cent of Australia’s gross domestic product – into the local economy.
CloudTech’s general manager of custody, Lucia Uen, told InvestorDaily managing the capital markets life cycle on blockchain has long been a strategic ambition.
“While early initiatives like the World Bank and CBA’s 2018 blockchain bond (Bond-i) demonstrated the feasibility of blockchain for issuance and settlement, the recent private market fund issuance on the London Stock Exchange Group marks a pivotal evolution,” Uen said.
She explained the milestone is significant not only because it validates blockchain’s readiness for institutional-grade deployment, but also because it overcomes long-standing interoperability limitations.
“A platform operated by a major global exchange has the ability to tokenise a broad range of assets for trading, paving the way for enhanced liquidity, transparency and efficiency across traditionally illiquid markets,” she said.
Uen believes tokenisation can bring the most value to assets where there is little liquidity or difficulties to access for everyday investors. “Private debt, income streams from say movies or concerts, domain names. Unlocking these asset classes to enable true diversification for the everyday investor.”
As regulatory frameworks are still evolving, Uen said full-scale adoption will require clearer guidance and stronger government and institutional support.
“Replicating successful models like LSEG’s end-to-end blockchain capital raise could modernise Australia’s capital markets, improve liquidity and position the country as a competitive player in digital finance,” she said.
