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, 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 terms of efficiency and reach, and we are excited to make our liquidity funds available on this platform." The UK-based company now provides its money market-style funds as tokenized shares on the Calastone Tokenized Distribution Network, leveraging blockchain infrastructure for issuance, trading, and settlement. These funds, denominated in US dollars, euros, and pound sterling, aim to preserve capital, facilitate same-day settlement, and generate yield. Calastone's 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. Tokenized versions of the funds are set to launch on Ethereum and compatible blockchains, with plans for additional networks in the future. 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.