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

In a significant development, 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 move is aimed at expanding the reach of its funds and streamlining the settlement process. According to Ross McDonald, a liquidity investment specialist at L&G, "The tokenized distribution network offers substantial improvements in efficiency and accessibility." The UK-based firm now provides its money market-style funds as tokenized shares on Calastone's blockchain-based platform, which handles issuance, trading, and settlement. These funds, denominated in US dollars, euros, and pound sterling, are designed to provide capital preservation, same-day settlement, and yield. Calastone's system manages token creation, order routing, and trade aggregation, while also linking to existing fund administration systems. As a result, L&G's investors can now purchase, hold, and transfer tokenized units within a secure, permissioned network. The tokenization of liquidity assets is expected to broaden access to short-term funds, particularly through digital platforms that require rapid settlement and continuous availability. The tokenized versions of the funds are set to launch on Ethereum and other compatible blockchains, with plans for expansion to additional networks. According to Simon Keefe, head of digital solutions at Calastone, this launch demonstrates the potential of tokenization to enhance distribution, improve efficiency, and increase access to established fund structures within a regulated framework.