L&G Tokenizes £50B Liquidity Funds on Calastone Network

Legal & General Asset Management announced Wednesday that it has tokenized more than £50 billion of liquidity funds on Calastone’s blockchain distribution network. The firm issued permissioned share classes on Ethereum and other EVM-compatible chains to allow authorized investors to buy, hold and transfer fund shares within a regulated framework. Traditional share classes remain available through existing distribution channels.

According to the announcement, the tokenized funds are denominated in U.S. dollars, euros and British pounds and are structured for capital preservation with same-day liquidity. The portfolios invest in high-quality, short-term money market instruments, including government bonds, bank deposits and corporate debt.

Calastone, part of SS&C Technologies, will handle token creation, order routing, trade aggregation, reconciliation and on-chain settlement. The platform is integrated with transfer agent and fund administration systems so tokenized transactions can be processed through established back-office frameworks, the announcement added.

Legal & General Asset Management reported it manages about £1.2 trillion across public and private markets. Calastone said its network connects more than 4,500 financial institutions globally.

Tokenized money market products have expanded in recent months. Data tracked by RWA.xyz show tokenized U.S. Treasury products and money market funds reached more than $13 billion year-to-date, up from roughly $8.9 billion at the start of the year. Notable tokenized funds include BlackRock’s USD Institutional Digital Liquidity Fund with about $2.47 billion, Franklin Templeton’s OnChain U.S. Government Money Fund at roughly $993 million and WisdomTree’s Government Money Market Digital Fund near $864 million.

Other asset managers have widened blockchain use. Franklin Templeton integrated its Benji platform with the Canton Network, BlackRock extended its institutional digital liquidity fund to the Solana blockchain and WisdomTree enabled 24/7 trading with instant settlement for its tokenized money market fund.

The Bank for International Settlements has warned that mismatches between near-instant token transfers and slower settlement of underlying assets could create liquidity tensions and contagion risk. In the U.K., the Financial Conduct Authority is consulting on rules covering custody, trading and other services, with a planned regulatory rollout targeted for 2027.

The companies said permissioned share classes and integration with existing fund administration are intended to preserve investor protections while offering faster settlement and expanded access for eligible investors.