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

Legal & General Asset Management has announced that it has successfully transferred over $68 billion in liquidity funds to a blockchain-based distribution platform 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, allowing us to make our liquidity funds more accessible to a wider range of investors." The UK-based firm is now offering its money market-style funds as tokenized shares on the Calastone Tokenized Distribution Network, which leverages blockchain infrastructure to manage issuance, trading, and settlement. The funds are denominated in US dollars, euros, and pound sterling, and are designed 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 that ensures regulated access. The tokenization of liquidity assets expands the ways in which investors can access short-term funds, particularly through digital platforms that require rapid settlement and continuous availability. The tokenized versions of the funds will be launched on the Ethereum blockchain and other compatible networks, with plans to expand to additional networks in the future. Simon Keefe, head of digital solutions at Calastone, noted that the launch demonstrates the potential of tokenization to enhance distribution, improve efficiency, and increase access to established fund structures within a controlled and regulated framework.