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

Legal & General Asset Management has announced the migration of 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, making our liquidity funds more accessible to a wider range of investors." The UK-based firm has made its money market-style funds available as tokenized shares on the Calastone Tokenized Distribution Network, which utilizes blockchain technology to facilitate issuance, trading, and settlement. The funds, denominated in US dollars, euros, and pound sterling, aim to provide investors with capital preservation, same-day settlement, and yield. Calastone's platform handles token creation, order routing, trade aggregation, and reconciliation, while also integrating with existing fund administration systems. This allows L&G's investors to purchase, hold, and transfer tokenized units within a permissioned network designed for regulated access. The tokenization of liquidity assets expands the range of options available to investors seeking access to short-term funds, particularly through digital platforms that require rapid settlement and continuous availability. The tokenized versions of the funds are set to launch on the Ethereum blockchain and other compatible networks, with plans for further expansion. Simon Keefe, head of digital solutions at Calastone, noted that the launch demonstrates the potential of tokenization to enhance distribution, improve efficiency, and broaden access to established fund structures within a controlled and regulated framework.