The UK’s largest asset manager Legal & General Asset Management (L&G) has launched a range of tokenized money market funds (MMFs) using the tokenization solution from fund distributor Calastone, which was launched last year. L&G has £1.2 trillion ($1.6 tn) in assets under management (AUM) and the liquidity funds being tokenized have £50 billion ($68 bn) in AUM.
The Calastone Tokenised Distribution Network supports the issuance of tokenized share classes, in this case for L&G GBP, EUR and USD funds, initially on the Ethereum and EVM compatible blockchains. The permissioned tokens can be bought, held, or instantly transferred through an integration with existing settlement and transfer agent infrastructure. Ross McDonald, L&G Liquidity Investment Specialist, described the tokenization as providing “meaningful enhancements in efficiency and reach”, referring to enabling access to digitally native investors.
This is not the first time L&G tokenized funds. In November 2024 it partnered with UK regulated MTF Archax to tokenize the same funds for access by professional and institutional investors. Given the latest deployment via Calastone, the tokens will be intermediated. Other UK asset managers have also pursued tokenization.
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