Legal & General Asset Management announced Wednesday that it has placed more than 50 billion pounds (approximately $68 million) of liquid funds under management on-chain through a new distribution channel created by Karastone.
Ross McDonald, liquidity investment specialist at L&G, said: “We are excited to now have our liquidity funds available on the Calastone tokenized distribution network.” “Tokenized distribution greatly enhances efficiency and reach.”
The UK-based company said it currently offers money market-style funds as tokenized shares on the Karastone tokenized distribution network, which uses blockchain infrastructure to handle issuance, trading and settlement.
The funds will be managed in US dollars, euros and sterling and aim to offer capital preservation, same-day settlement and yield, the company said in a statement.
Calastone’s system manages token creation, order routing, transaction aggregation and reconciliation, while linking with existing fund management systems. L&G said investors are now allowed to buy, hold and transfer tokenized units within a permissioned network designed for regulated access.
L&G also explained that the tokenization of liquid assets expands the ways investors can access short-term funds, especially through digital platforms that require quick settlement and continuous availability.
The company said the tokenized version of the fund will launch on an Ethereum-compatible blockchain, with more networks planned.
Simon Keefe, head of digital solutions at Karastone, said the launch shows how tokenization can be applied to existing fund structures “to enhance distribution, improve efficiency and widen access within a managed and regulated framework”.
