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

In a landmark move, Legal & General Asset Management has successfully transitioned over $68 billion in liquidity funds to a blockchain-based platform, courtesy of Calastone's token network. This strategic shift enables the company to expand its reach and facilitate faster settlements. According to Ross McDonald, a liquidity investment specialist at L&G, 'The tokenized distribution network offers significant improvements in terms of 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 streamline issuance, trading, and settlement processes. These funds, denominated in US dollars, euros, and pound sterling, prioritize capital preservation, same-day settlement, and yield generation. Calastone's system seamlessly manages 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 to ensure regulated access. The tokenization of liquidity assets is expected to broaden investor access to short-term funds, particularly through digital platforms that require rapid settlement and continuous availability. Initially, the tokenized funds will be launched on Ethereum and compatible blockchains, with plans to expand to additional networks in the future. Simon Keefe, head of digital solutions at Calastone, views this launch as a testament to the potential of tokenization in enhancing distribution, improving efficiency, and expanding access within a controlled, regulated framework.