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

In a significant development, Legal & General Asset Management has successfully transferred over $68 billion in liquidity funds to the blockchain using Calastone's token network. This strategic move marks a new era in fund distribution, leveraging blockchain technology to expand investor access and streamline settlement processes. According to Ross McDonald, a liquidity investment specialist at L&G, the tokenized distribution model offers substantial improvements in efficiency and reach. The UK-based firm has made its money market-style funds available as tokenized shares on the Calastone Tokenized Distribution Network, which utilizes blockchain infrastructure 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. 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 regulated, permissioned network. The tokenization of liquidity assets expands investor access to short-term funds, particularly through digital platforms that require rapid settlement and continuous availability. The tokenized versions of these funds are set to launch on the Ethereum blockchain and compatible networks, with plans for further expansion. According to Simon Keefe, Calastone's head of digital solutions, this launch demonstrates the potential of tokenization to enhance distribution, improve efficiency, and broaden access to established fund structures within a controlled, regulated framework.