Legal & General Asset Management announced Wednesday that it has placed more than 50 billion pounds (about $68 million) in liquidity funds that it manages on-chain through a new distribution channel built by Calastone.
“We are excited to make our liquidity funds available on the tokenized calastone distribution network,” said Ross McDonald, Liquidity Investment Specialist at L&G. “Tokenized distribution offers significant improvements in efficiency and reach.”
The UK-based company said it now offers its money market-style funds as tokenized shares on the Calastone tokenized distribution network, which uses blockchain infrastructure to manage issuance, trading and settlement.
The funds operate in US dollars, euros and pounds sterling and aim to provide capital preservation, same-day settlement and return, the company statement added.
Calastone’s system manages token creation, order routing, trade aggregation and reconciliation while connecting to existing fund administration systems. L&G said its investors are now allowed to purchase, hold and transfer tokenized units within a permissioned network designed for regulated access.
L&G also explained that the tokenization of liquid assets expands the way investors can access short-term funds, particularly through digital platforms which require faster settlement and continuous availability.
Tokenized versions of the funds will launch on Ethereum and compatible blockchains, with more networks planned, the company said.
Simon Keefe, head of digital solutions at Calastone, said the launch shows how tokenization can be applied to established fund structures “to improve distribution, improve efficiency and broaden access within a controlled and regulated framework”.
