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

In a significant move, Legal & General Asset Management has successfully transferred over $68 billion in liquidity funds to a blockchain-based distribution channel developed by Calastone. This transition is expected to increase efficiency and expand the reach of these funds. According to Ross McDonald, a liquidity investment specialist at L&G, the tokenized distribution network offers substantial improvements in both areas. The UK-based firm now offers its money market-style funds as tokenized shares on the Calastone Tokenized Distribution Network, leveraging blockchain technology for issuance, trading, and settlement. These funds are denominated in US dollars, euros, and pound sterling, with a focus on preserving capital, providing same-day settlement, and generating yield. Calastone's system streamlines 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 secure, permissioned network designed for regulated access. The tokenization of liquidity assets is set to broaden access to short-term funds, particularly through digital platforms that require rapid settlement and continuous availability. The tokenized versions of these funds will initially be launched on the Ethereum blockchain and other compatible networks, with plans for expansion to additional networks in the future. Simon Keefe, head of digital solutions at Calastone, views this launch as a demonstration of how tokenization can be applied to established fund structures to enhance distribution, improve efficiency, and increase access within a controlled, regulated framework.