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

In a significant development, Legal & General Asset Management has successfully transferred over $68 billion in liquidity funds to a blockchain-based platform, utilizing a novel distribution channel established by Calastone. According to Ross McDonald, a liquidity investment specialist at L&G, "The tokenized distribution network offers substantial improvements in terms of efficiency and reach, and we are delighted to make our liquidity funds available on this platform." The UK-based firm has begun offering its money market-style funds as tokenized shares on the Calastone Tokenized Distribution Network, which leverages blockchain technology to manage 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 oversees 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 the range of options for investors seeking to access short-term funds, particularly through digital platforms that require rapid settlement and continuous availability. The tokenized versions of these funds are slated to launch on the Ethereum blockchain and compatible networks, with plans for expansion to additional networks. 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 within a controlled, regulated framework.