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

In a significant move, Legal & General Asset Management has announced the successful on-chain placement of over $68 billion in liquidity funds through a novel distribution channel developed 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 through this platform." The UK-based company has made its money-market style funds available as tokenized shares on the Calastone Tokenized Distribution Network, leveraging 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. This development allows L&G investors to 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. The tokenized versions of these funds are set to launch on Ethereum and compatible blockchains, with plans for expansion 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.