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

In a significant move, Legal & General Asset Management has announced the transfer of over $68 billion in liquidity funds to a blockchain-based platform developed by Calastone. According to Ross McDonald, a liquidity investment specialist at L&G, this transition to tokenized distribution is expected to bring about substantial improvements in efficiency and reach. 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 for issuance, trading, and settlement. These funds are denominated in US dollars, euros, and pound sterling, focusing on preserving capital, enabling same-day settlement, and generating yield. Calastone's system oversees token creation, order routing, trade aggregation, and reconciliation, while linking to existing fund administration systems. As a result, L&G's investors can now purchase, hold, and transfer tokenized units within a permissioned network designed for regulated access. The tokenization of liquidity assets expands investors' 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 other networks. Simon Keefe, head of digital solutions at Calastone, views this launch as a demonstration of how tokenization can enhance distribution, improve efficiency, and broaden access within a controlled, regulated framework.