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

In a significant development, Legal & General Asset Management has announced the migration of over $68 billion in liquidity funds to a blockchain-based platform, courtesy of a novel distribution channel established by Calastone. Ross McDonald, a liquidity investment specialist at L&G, expressed enthusiasm for the move, stating, "The tokenized distribution network offers 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, denominated in US dollars, euros, and pound sterling, aim to provide capital preservation, same-day settlement, and yield. Calastone's system oversees 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 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 additional networks in the future. According to Simon Keefe, head of digital solutions at Calastone, this launch demonstrates the potential of tokenization to enhance distribution, improve efficiency, and broaden access within a controlled, regulated framework.