UK Asset Manager Invests $68 Billion in Funds via Calastone's Blockchain Network

In a significant development, Legal & General Asset Management has announced the transfer of over $68 billion in liquidity funds to a blockchain-based platform, courtesy of a novel distribution channel created by Calastone. According to Ross McDonald, a liquidity investment specialist at L&G, "The tokenized distribution network offers substantial improvements in efficiency and reach, and we are excited to make our liquidity funds available on this platform." The UK-based firm is now offering its money market-style funds as tokenized shares on the Calastone Tokenized Distribution Network, leveraging blockchain infrastructure to facilitate issuance, trading, and settlement. These funds, denominated in US dollars, euros, and pound sterling, aim to provide capital preservation, same-day settlement, and yield. The Calastone 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 investor access to short-term funds, particularly through digital platforms that require rapid settlement and continuous availability. The tokenized versions of these funds are set to launch on Ethereum and compatible blockchains, with plans to expand 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 within a controlled, regulated framework.