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

In a significant move, Legal & General Asset Management has successfully transferred over $68 billion in liquidity funds to a blockchain-based platform, utilizing Calastone's token network for distribution. This development enables the company to expand its reach and facilitate faster settlements. According to Ross McDonald, a liquidity investment specialist at L&G, the tokenized distribution model offers substantial improvements in efficiency and accessibility. The UK-based firm has made its money market-style funds available as tokenized shares on the Calastone network, which leverages 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. The Calastone system streamlines 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 regulated, permissioned network. The tokenization of liquidity assets is expected to broaden access to short-term funds, particularly through digital platforms that require rapid settlement and continuous availability. The tokenized funds will initially be launched on Ethereum and compatible blockchains, with plans to expand to additional networks. According to Simon Keefe, head of digital solutions at Calastone, this launch demonstrates the potential of tokenization to enhance distribution, improve efficiency, and increase access to established fund structures within a controlled, regulated framework.