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

Legal & General Asset Management 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 efficiency and reach, making our liquidity funds more accessible to a broader range of investors." The UK-based firm has made its money-market style funds available as tokenized shares on the Calastone Tokenized Distribution Network, leveraging blockchain technology for issuance, trading, and settlement. These funds, denominated in US dollars, euros, and pound sterling, aim to provide 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. As a result, 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 investor access to short-term funds, particularly through digital platforms that require faster settlement and continuous availability. The tokenized funds will be launched on Ethereum and compatible blockchains, with plans for 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 broaden access to established fund structures within a controlled, regulated framework.