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

In a recent announcement, Legal & General Asset Management revealed that it has successfully transferred over $68 billion in liquidity funds to a blockchain-based distribution platform developed by Calastone. According to Ross McDonald, a liquidity investment specialist at L&G, "The tokenized distribution network offers significant improvements in terms of efficiency and reach, and we are excited to make our liquidity funds available through this channel." The UK-based company has made its money market-style funds available as tokenized shares on the Calastone Tokenized Distribution Network, leveraging blockchain technology for issuance, trading, and settlement. The funds are denominated in US dollars, euros, and pound sterling, aiming to provide capital preservation, same-day settlement, and yield. Calastone's system handles token creation, order routing, trade aggregation, and reconciliation, while integrating with existing fund administration systems. 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 faster settlement and continuous availability. Tokenized versions of the funds will be launched on Ethereum and compatible blockchains, with plans to expand to additional networks. Simon Keefe, head of digital solutions at Calastone, noted that the launch demonstrates the potential of tokenization to enhance distribution, improve efficiency, and broaden access within a controlled, regulated framework.