Legal & General Asset Management announced Wednesday that it placed more than 50 billion pounds (approximately $68 million) in liquidity pools that it manages on-chain through a new distribution channel built by Calastone.
“We are delighted to have our liquidity pools available on the Calastone tokenized distribution network,” said Ross McDonald, Liquidity Investment Specialist at L&G. “Tokenized distribution provides significant improvements in efficiency and reach.”
The UK-based firm said it now offers its money market-style 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 pounds sterling and aim to provide capital preservation, same-day settlement and performance, the company 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 can now purchase, hold and transfer tokenized units within a permissioned network designed for regulated access.
L&G also explained that its tokenization of liquidity assets expands the way investors can access short-term funds, especially through digital platforms that require faster settlement and continuous availability.
Tokenized versions of the funds will be launched on Ethereum and supported blockchains, and more networks are planned, the firm 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 expand access within a controlled and regulated framework.”
