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

On Wednesday, Legal & General Asset Management announced 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 company now provides its money market-style funds as tokenized shares on the Calastone Tokenized Distribution Network, which utilizes blockchain infrastructure for issuance, trading, and settlement. These funds are denominated in US dollars, euros, and pound sterling, with the primary objectives of preserving capital, enabling same-day settlement, and generating returns. Calastone's system is responsible for token creation, order routing, trade aggregation, and reconciliation, while also linking to existing fund administration systems. L&G has stated that its investors can now purchase, hold, and transfer tokenized units within a permissioned network designed for regulated access. Furthermore, L&G has emphasized that the tokenization of liquidity assets expands the ways in which investors can access short-term funds, particularly through digital platforms that require rapid settlement and continuous availability. The tokenized versions of these funds are scheduled to launch on the Ethereum blockchain and other compatible networks, with plans for expansion to additional networks in the future. Simon Keefe, the 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 and regulated framework.