Archax helps Lingfeng Capital list a tokenised fund on the LSEG digital assets platform
- Future of Finance
- Jan 18
- 4 min read
Updated: 3 days ago
Lingfeng Capital is listing its Digital Venture Fund (DVF) in token form on the LSEG DMI digital assets platform
Archax is providing issuance, connectivity and custody services to make the tokenised fund interoperable with the traditional fund
The DVF fund is invested in a variety of fintech businesses funded by Lingfeng Capital
The Digital Venture Fund (DVF), a fintech investment fund managed by Beijing-headquartered and Hong Kong-managed Lingfeng Capital, will launch in tokenised form on the Digital Markets Infrastructure (DMI) of the London Stock Exchange Group (LSEG). The formal launch will take place in March at an LSEG market opening ceremony.
DVF invests in fintech and digital-infrastructure companies through a traditional venture strategy. By making the fund available in tokenised form, Lingfeng hopes to widen distribution, improve operational efficiency and provide liquidity opportunities for investors to sell their holdings.
“DVF exists to prove that high-quality venture investing can be expanded by tokenised access,” explains Brian McNulty, now a managing partner of the DVF at Lingfeng Capital, but previously the founder of the tokenised fund exchange platform Fund Admin Chain (FAC) - now re-branded as Tocan - that was acquired by Apex Group in March 2022.
Lingfeng Capital also hopes that the digital-native investors that purchase tokens will be encouraged to invest in its other venture funds, even though these will continue to be available in traditional form through traditional channels only.
Archax, the London-based digital asset exchange, broker and custodian, is providing to DVF the digital issuance, secondary-market connectivity and custody services - ultimately, a transfer agency or registrar service - it needs to make the interoperability between the tokenised and traditional forms of the fund work.
“As the first FCA-regulated digital securities exchange, broker and custodian, we are uniquely positioned to provide compliant token issuance, secondary trading and custody within a single regulated environment,” says Graham Rodford, CEO and co-founder of Archax. “DVF showcases how real-world assets and digital rails can operate together to open new markets for investors without sacrificing oversight or trust.”
McNulty believes listing on DMI will attract more investors to DVF, not just by making the fund accessible, but by providing liquidity.
“Investors want diversification, they want innovation, and they want regulated structures they can trust,” he says. “We are now able to offer a product that stays firmly institutional while opening the door to new forms of participation and liquidity. This collaboration is an important milestone in connecting global capital to digital markets infrastructure.”
DVF is the second fund to list on the DMI digital assets issuance, tokenisation, distribution and asset servicing platform that the LSEG launched in September 2025. Just a week after the launch of DMI, Bermuda-based MembersCap launched MCM Fund I, a reinsurance fund available in both tokenised and traditional forms, on the platform.
Patrick Barrett, Managing Partner and CEO of MembersCap, explained at the time that “there is a growing base of investors seeking access to high-quality alternatives beyond private equity and credit–and they are increasingly demanding optionality in how they access it, whether that’s through fiat or digital currencies. LSEG’s DMI enables this access and positions the platform – and funds like ours who seek to leverage it – at the centre of the transformation in how investors access and build their portfolios.”
LSEG also added at the time of the launch that a selection of funds managed by alternative asset manager EJF Capital would also be available on DMI “shortly.”
LSEG built DMI in conjunction with Microsoft Azure - the exchange agreed a long-term strategic partnership with Microsoft in December 2022 – as its primary axis of advance into digital assets.
DMI uses blockchain technology to provide a marketplace for all types of private funds, including closed-end funds (such as investment trusts), semi-liquid funds (funds with periodic redemption options) and evergreen funds (undated private funds with periodic redemption opportunities).
The idea behind DMI fund listings is that the tokenised versions of the funds will be fully interoperable with their traditional counterparts, reducing transaction costs and providing investors with a trading and asset servicing infrastructure that makes them indifferent as to whether an asset is tokenised or not. This might encourage more fund issuers to tokenise their offerings.
“LSEG is pleased that Lingfeng Capital and DVF has chosen to use LSEG’s Digital Markets Infrastructure” said Darko Hajdukovic, Head of Digital Markets Infrastructure. "We’re excited to be working with such an innovative firm, offering professional investors access to exciting new investment opportunities through LSEG’s independent, trusted and scaled network.”
LSEG is making DMI accessible via its new (June 2025) Workspace market and financial data, analytics, trading, news and content user front-end, which is also a product of its partnership with Microsoft. Importantly, LSEG sees tokenising private funds as the earliest opportunity for DMI only. The exchange intends to expand DMI into other asset classes, including tokenised debt and equity securities, over time.
It is tracing a familiar path into the future. Tokenisation enthusiasts have long identified privately managed assets as an early target for tokenisation, precisely because they lack infrastructure and are difficult and expensive to access.
Unlike conventional mutual funds invested in publicly traded securities, funds invested in private equity, credit, real estate and infrastructure are inaccessible because they have high minimum subscription amounts at issuance and are traded little, if at all, once they are issued.
The privately managed asset markets are also reassuringly sizeable. The latest McKinsey survey of privately managed assets put the value of private equity, debt, real estate and infrastructure assets under management at US$22 trillion in 2024.[1]
So the case for building a tokenised infrastructure to add liquidity and lower minimum subscriptions is not hard to make. Indeed, the Singapore- and blockchain-based ADDX exchange- which graduated from the Monetary Authority of Singapore (MAS) sandbox – has been pioneering the field for the last six years.
Since 2020 ADDX has listed tokenised versions of private funds managed by Aggregate Asset Management (AAM), Elite Partners Capital, Fullerton Fund Management, Hamilton Lane, ICHAM, InvestCorp, Innoven Capital, Lion Global Investors, Mapletree Real Estate Providers, Partners Group and SeaTown. ADDX, which has also listed tokenised debt instruments, now styles itself as a private market exchange.
[1] McKinsey & Company, Global Private Markets Report 2025: Braced for shifting weather.