Legal & General Asset Management has launched tokenized share classes for its liquidity funds on Calastone’s blockchain distribution network, offering investors an on-chain option to purchase, hold and transfer fund shares alongside traditional settlement channels.
The tokenized classes are permissioned: only authorized participants can buy, hold and move the tokens within a regulated environment, while the funds’ existing share classes will continue to trade through conventional distribution systems. The liquidity funds—denominated in US dollars, euros and British pounds—manage more than £50 billion and aim for capital preservation with same-day liquidity by investing in high-quality, short-term money market instruments such as government debt, bank deposits and corporate commercial paper.
Calastone, now part of SS&C Technologies, supplies the infrastructure for token creation, order routing, trade aggregation, reconciliation and on-chain 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 oversees roughly £1.2 trillion in assets across public and private markets, and Calastone says its network connects more than 4,500 financial institutions worldwide.
The rollout arrives as UK regulators build out a broader crypto framework: the Financial Conduct Authority is consulting on rules covering custody and trading ahead of a planned 2027 implementation timetable.
Tokenized money market products have expanded this year. Data from RWA.xyz show tokenized US Treasury and money market products have climbed to more than $13 billion year-to-date, up from about $8.9 billion at the start of the year. Notable offerings include BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) at 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 industry moves include Franklin Templeton integrating its Benji platform with the Canton Network for broader institutional distribution, BlackRock extending BUIDL to Solana, and WisdomTree securing regulatory relief to permit 24/7 trading and instant settlement for its tokenized fund within a regulated framework.
Regulators and central banks have warned that instant token transfers combined with slower settlement of underlying assets could create liquidity mismatches and contagion risk—a concern highlighted by the Bank for International Settlements as these products scale.
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