UK Asset Manager Moves $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 platform, courtesy of a novel distribution channel developed 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 excited to make our liquidity funds available on this platform." The UK-based firm has made its money-market style funds available as tokenized shares on the Calastone Tokenized Distribution Network, which utilizes blockchain infrastructure to manage 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 oversees 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 permissioned network designed for regulated access. The tokenization of liquidity assets expands the avenues through which investors can access short-term funds, particularly via digital platforms that demand faster 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 within a controlled, regulated framework.