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, courtesy of a novel 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 through this innovative channel." The UK-based firm now offers its money market-style funds as tokenized shares on the Calastone Tokenized Distribution Network, leveraging blockchain infrastructure to streamline issuance, trading, and settlement processes. These funds, denominated in US dollars, euros, and pound sterling, aim to provide investors with capital preservation, same-day settlement, and yield. The Calastone system oversees token creation, order routing, trade aggregation, and reconciliation, while integrating with existing fund administration systems. As a result, L&G's investors can now purchase, hold, and transfer tokenized units within a permissioned network designed to ensure regulated access. The tokenization of liquidity assets expands investor access to short-term funds, particularly through digital platforms that require rapid settlement and continuous availability. The tokenized versions of these funds are set to launch on the Ethereum blockchain and compatible networks, with plans for further expansion. Simon Keefe, head of digital solutions at Calastone, noted that this launch demonstrates the potential of tokenization to enhance distribution, improve efficiency, and broaden access to established fund structures within a controlled, regulated framework.