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

In a significant move, Legal & General Asset Management has successfully transferred over $68 billion in liquidity funds to a blockchain-based platform developed by Calastone. This strategic shift enables the company to expand its reach and streamline settlement processes. According to Ross McDonald, a liquidity investment specialist at L&G, the integration of tokenized distribution offers substantial improvements in efficiency and accessibility. The UK-based firm now offers its money market-style funds as tokenized shares on the Calastone Tokenized Distribution Network, leveraging blockchain technology to handle 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 oversees token creation, order routing, trade aggregation, and reconciliation, while maintaining links to 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 funds are set to launch on Ethereum and compatible blockchains, with plans to expand to additional networks. 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.