UK Asset Manager Invests $68 Billion in Funds via Blockchain Technology

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 integration of our liquidity funds into the Calastone Tokenized Distribution Network is a significant development, offering substantial improvements in efficiency and reach." The UK-based firm has made its money market-style funds available as tokenized shares on the Calastone network, leveraging blockchain technology for issuance, trading, and settlement. These funds, denominated in US dollars, euros, and pound sterling, aim to provide investors with capital preservation, same-day settlement, and yield. Calastone's system handles token creation, order routing, trade aggregation, and reconciliation, while also linking to existing fund administration systems. As a result, L&G's investors can now purchase, hold, and transfer tokenized units within a regulated, permissioned network. 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 funds will initially launch on Ethereum and compatible blockchains, with plans for expansion to 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.