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

Legal & General Asset Management has announced the successful transfer of over $68 billion in liquidity funds to a blockchain platform, utilizing 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 efficiency and reach, and we are excited to make our liquidity funds available through this platform." The UK-based firm is now offering its money market-style funds as tokenized shares on the Calastone Tokenized Distribution Network, which leverages blockchain technology for issuance, trading, and settlement. These funds are denominated in US dollars, euros, and pound sterling, with the primary objectives of preserving capital, facilitating same-day settlement, and generating 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 to ensure regulated access. The tokenization of liquidity assets expands the avenues through which investors can access short-term funds, particularly via digital platforms that require rapid settlement and continuous availability. The tokenized versions of these funds are set to launch on the Ethereum blockchain and other compatible networks, with plans for further expansion. Simon Keefe, Calastone's head of digital solutions, noted that this launch demonstrates the potential of tokenization to enhance distribution, improve efficiency, and broaden access to established fund structures, all within a controlled and regulated framework.