London-based Legal & General Asset Management has made tokenized versions of its liquidity funds available through Calastone’s blockchain-based distribution network, giving investors an onchain option to access and transfer fund shares alongside traditional settlement systems.
The tokenized share classes are permissioned, allowing only authorized users to buy, hold and transfer them within a regulated environment, while existing share classes continue to trade through current distribution channels. The funds—denominated in US dollars, euros and British pounds—manage more than £50 billion and target capital preservation with same-day liquidity by investing in high-quality, short-term money market instruments such as government bonds, bank deposits and corporate debt.
Calastone, part of SS&C Technologies, provides the infrastructure for token creation, order routing, trade aggregation, reconciliation and onchain settlement, integrated with transfer agent and fund administration systems. Tokenized shares will initially be issued on Ethereum and other EVM-compatible networks.
Legal & General Asset Management manages about £1.2 trillion in assets across public and private markets, and Calastone says its network connects more than 4,500 financial institutions globally.
The launch comes as UK regulators develop a broader crypto framework, with the Financial Conduct Authority consulting on rules covering custody and trading ahead of a planned 2027 rollout.
Tokenized money market funds have been expanding as asset managers broaden distribution across blockchains and trading models. RWA.xyz data show tokenized US Treasury products, including money market funds, have grown to more than $13 billion year-to-date, up from about $8.9 billion at the start of the year. Leading products include BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) with roughly $2.47 billion, Franklin Templeton’s OnChain US Government Money Fund at about $993 million, and WisdomTree’s Government Money Market Digital Fund at approximately $864 million.
Recent moves by managers include Franklin Templeton integrating its Benji platform with the Canton Network to extend institutional blockchain distribution, BlackRock expanding BUIDL to the Solana blockchain, and WisdomTree obtaining relief to enable 24/7 trading and instant settlement for its tokenized money market fund within a regulated framework.
Regulators and central banks have cautioned that instant token transfers paired with slower settlement of underlying assets could create liquidity mismatches and contagion risks, a concern highlighted by the Bank for International Settlements as these products scale.
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