Legal & General Migrates $68 Billion in Liquidity Funds to Blockchain

Legal & General Asset Management (L&G) has announced the integration of more than £50 billion (approximately $68 billion) of its liquidity funds into a blockchain-based distribution system. The transition is powered by the Calastone Tokenized Distribution Network, marking a significant shift in how the firm manages and distributes its money-market style assets. By converting these funds into tokenized shares, L&G aims to modernize the issuance, trading, and settlement processes. The initiative targets improved operational efficiency and a broader reach, allowing investors to interact with short-term funds through digital platforms that demand continuous availability and faster settlement cycles. The tokenized funds are available in U.S. dollars, euros, and pound sterling. According to the firm, the primary objectives are to ensure capital preservation and provide yield while achieving same-day settlement. The Calastone infrastructure handles the technical requirements, including token creation, order routing, trade aggregation, and reconciliation, while remaining linked to existing fund administration systems. The funds will initially launch on Ethereum and other compatible blockchains, operating within a permissioned network to ensure regulatory compliance. This move reflects a growing trend among institutional asset managers to adopt Real World Asset (RWA) tokenization to reduce friction and overhead in traditional financial operations.