Legal & General Asset Management announced on Wednesday that it is placing the more than 50 billion pounds (about $68 million) in liquidity funds it manages onchain through a new distribution channel built by Calastone.
“We are thrilled to make our liquidity funds available on the Calastone Tokenized Distribution Network,” said Ross McDonald, Liquidity Investment Specialist at L&G. “Tokenized distribution provides meaningful improvements in efficiency and reach.”
The UK-based firm said it is now offering its money market funds as tokenized shares on the Calastone Tokenized Distribution Network, which uses blockchain infrastructure to handle issuance, trading and settlement.
The funds operate in US dollars, euros and sterling and aim to ensure capital preservation, same-day settlement and returns, the firm’s statement added.
Calastone’s system manages token creation, order routing, trade aggregation and reconciliation while linking to existing fund management systems. L&G said its investors are now allowed to buy, hold and transfer tokenized units within a permissioned network designed for regulated access.
L&G also explained that their tokenization of liquidity assets expands how investors can access short-term funds, particularly through digital platforms that require faster settlement and continuous availability.
Tokenized versions of the funds will launch on Ethereum and compatible blockchains, with more networks planned, the firm said.
Simon Keefe, head of digital solutions at Calastone, said the launch shows how tokenization can apply to established fund structures “to improve distribution, improve efficiency and expand access within a controlled, regulated framework.”
