UK Asset Manager Moves $68 Billion in Funds to Blockchain via Calastone

In a significant move, Legal & General Asset Management has announced the transfer of over $68 billion in liquidity funds to a blockchain-based platform, utilizing Calastone's token network for distribution. According to Ross McDonald, a liquidity investment specialist at L&G, 'The tokenized distribution network offers substantial improvements in efficiency and reach, and we are excited to make our liquidity funds available through this channel.' The UK-based firm has made its money market-style funds available as tokenized shares on the Calastone Tokenized Distribution Network, which leverages blockchain technology for issuance, trading, and settlement. These funds, denominated in US dollars, euros, and pound sterling, aim 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 in the future. According to Simon Keefe, head of digital solutions at Calastone, this launch demonstrates the potential of tokenization to enhance distribution, improve efficiency, and broaden access within a controlled, regulated framework.