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

Legal & General Asset Management has announced the on-chain transfer of over $68 billion in liquidity funds through a novel distribution channel developed by Calastone. According to Ross McDonald, a liquidity investment specialist at L&G, "The tokenized distribution network offers significant improvements in efficiency and reach, and we are excited to make our liquidity funds available through this platform." The UK-based firm now provides its money market-style funds as tokenized shares on the Calastone Tokenized Distribution Network, leveraging blockchain infrastructure 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. 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. Tokenized versions of the funds are set to launch on Ethereum and compatible blockchains, with plans for 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.