London-based Legal & General Asset Management (LGAM) has tokenized its liquidity funds, making them accessible through Calastone’s blockchain distribution network. This move provides investors with digital access and transfer capabilities for fund shares, offering an alternative to traditional settlement systems.
The tokenized share classes are issued with permissioned access, allowing authorized users to buy, hold, and transfer them within a regulated framework, while traditional share classes remain accessible.
The funds, which manage over £50 billion in assets across US dollars, euros, and British pound sterling, focus on capital preservation and same-day liquidity. They invest in high-quality, short-term money market instruments.
Calastone’s network, part of SS&C Technologies, handles token creation, order routing, trade aggregation, reconciliation, and onchain settlement, integrating with existing fund administration systems. The tokenized funds will initially be issued on Ethereum and other EVM-compatible networks.
LGAM manages approximately £1.2 trillion in assets. Calastone’s network connects over 4,500 financial institutions globally.
This development aligns with the growing trend of tokenized money market funds. Data shows tokenized US Treasury products, including money market funds, have surpassed $13 billion in assets. Major players like BlackRock, Franklin Templeton, and WisdomTree are expanding their tokenized offerings across various blockchain networks.