UK Asset Manager Moves $68 Billion in Funds to Blockchain via Calastone's 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 Calastone's tokenized distribution network. This strategic move is aimed at expanding the reach and efficiency of the company's money market funds. 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 Calastone's network, which leverages blockchain technology to facilitate issuance, trading, and settlement. The funds, denominated in US dollars, euros, and pound sterling, are designed 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. This development enables L&G's investors to purchase, hold, and transfer tokenized units within a permissioned network, ensuring regulated access. 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 be launched on the Ethereum blockchain and compatible networks, with plans for expansion to other networks in the future. Simon Keefe, head of digital solutions at Calastone, views this launch as a demonstration of how tokenization can be applied to established fund structures to enhance distribution, improve efficiency, and increase access within a controlled, regulated framework.