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

Legal & General Asset Management has announced the on-chain placement of over $68 billion in liquidity funds through a novel distribution channel developed by Calastone. "We are excited to offer our liquidity funds on the Calastone Tokenized Distribution Network," stated Ross McDonald, a liquidity investment specialist at L&G. "Tokenized distribution brings significant improvements in efficiency and reach." The UK-based firm now provides its money-market style funds 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. 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 requiring faster settlement and continuous availability. Tokenized versions of the funds will be launched on Ethereum and compatible blockchains, with plans for additional networks. According to Simon Keefe, head of digital solutions at Calastone, the launch demonstrates how tokenization can enhance distribution, improve efficiency, and broaden access within a controlled, regulated framework.