UK Asset Manager Transfers $68 Billion in Funds to Blockchain via Calastone's Token Network

In a groundbreaking move, Legal & General Asset Management has successfully transferred over $68 billion in liquidity funds to a blockchain-based platform, utilizing Calastone's innovative token network. This strategic partnership enables the company to expand its reach and streamline settlement processes. According to Ross McDonald, a liquidity investment specialist at L&G, 'The tokenized distribution network offers significant improvements in efficiency and accessibility.' The UK-based firm now offers its money market-style funds as tokenized shares on Calastone's network, which leverages blockchain technology for issuance, trading, and settlement. These funds, denominated in US dollars, euros, and pound sterling, aim to provide investors with capital preservation, same-day settlement, and yield. Calastone's system handles token creation, order routing, and trade aggregation, while integrating with existing fund administration systems. As a result, L&G's investors can now purchase, hold, and transfer tokenized units within a secure, permissioned network designed for regulated access. The tokenization of liquidity assets also broadens the range of options for investors seeking short-term funds, particularly through digital platforms that require rapid settlement and continuous availability. The tokenized funds are set to launch on Ethereum and compatible blockchains, with plans for expansion to additional networks. Simon Keefe, head of digital solutions at Calastone, noted that this launch demonstrates the potential of tokenization to enhance distribution, improve efficiency, and increase access to established fund structures within a controlled, regulated framework.