Legal & General Asset Management announced on Wednesday that it is putting more than £50 billion (approximately $68 million) of liquidity under management on-chain through a new distribution channel established by Calastone.
“We are pleased to be able to offer our liquidity on the Calastone tokenized distribution network,” said Ross McDonald, Liquidity Investment Specialist at L&G. “Tokenized distribution greatly improves efficiency and reach.”
The UK-based company said it now offers money market-style funds in the form of tokenized shares on the Calastone tokenized distribution network, which uses blockchain infrastructure to handle issuance, trading and settlement.
The funds, which operate in U.S. dollars, euros and British pounds, are designed to provide capital preservation, same-day settlement and income, the company statement added.
Calastone’s system manages token creation, order routing, trade aggregation and reconciliation, while connecting to existing treasury management systems. L&G said its investors can now buy, hold and transfer tokenized units within a licensed network designed for regulatory access.
L&G also explained that the tokenization of their liquid assets expands the ways in which investors can access short-term funding, particularly through digital platforms that require faster settlement and continued availability.
Tokenized versions of the funds will be launched on Ethereum and compatible blockchains, with additional networks planned, the company said.
Simon Keefe, head of digital solutions at Calastone, said the launch demonstrates how tokenization can be applied to established fund structures “to enhance distribution, improve efficiencies and expand access within a controlled, regulated framework”.
