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

In a recent announcement, Legal & General Asset Management revealed that it has successfully transferred over $68 billion in liquidity funds to a blockchain-based distribution channel developed by Calastone. According to Ross McDonald, a liquidity investment specialist at L&G, "The tokenized distribution network offers significant improvements in terms of efficiency and reach, and we are excited to make our liquidity funds available on this platform." The UK-based firm has begun offering its money market-style funds as tokenized shares on the Calastone Tokenized Distribution Network, which leverages blockchain technology to facilitate issuance, trading, and settlement. The funds are denominated in US dollars, euros, and pound sterling, with a focus on providing capital preservation, same-day settlement, and yield. Calastone's system handles token creation, order routing, trade aggregation, and reconciliation, while integrating with existing fund administration systems. L&G's investors can now purchase, hold, and transfer tokenized units within a permissioned network designed for regulated access. The tokenization of liquidity assets expands the range of options available to investors seeking 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 the Ethereum blockchain and other compatible networks, with plans for further expansion. Simon Keefe, head of digital solutions at Calastone, noted that the launch demonstrates the potential of tokenization to enhance distribution, improve efficiency, and broaden access to established fund structures within a controlled and regulated framework.