London-based Legal & General Asset Management has made its liquidity funds available in tokenized form via Calastone’s blockchain-based distribution network, enabling investors to access and transfer fund shares via digital infrastructure as an alternative to established settlement systems.
According to Wednesday announcementtokenized share classes are issued on a permissive basis, allowing authorized users to purchase, hold and transfer them in a regulated environment, while established share classes remain available through existing distribution channels.
US Dollar, Euro and British Pound denominated funds have assets under management of over £50 billion and aim to preserve capital and same-day liquidity. They invest in high-quality, short-term money market instruments, including government bonds, bank deposits and corporate debt.
The Calastone Network, part of SS&C Technologies, provides infrastructure for token creation, order routing, trade aggregation, reconciliation and onchain settlement, integrated with existing transfer agent and fund administration systems.
Tokenized versions of the funds will initially be issued on Ethereum and other EVM-compatible networks.
According to the company, its Legal & General Asset Management division manages around £1.2 trillion of assets across public and private markets, while Calastone says its network connects more than 4,500 financial institutions around the world.
The move comes as UK regulators work on a broader crypto framework, with the Financial Conduct Authority consulting on rules covering areas such as custody and trading ahead of the planned introduction of regulations in 2027.
Related: Ripple partners with Kyobo for tokenized bond settlement in South Korea
Tokenized money market funds are growing as asset managers expand distribution
Tokenized money market funds are growing as asset managers expand distribution across blockchain networks and trading models.
According to RWA.xyz datatokenized U.S. Treasury products, including money market funds, have grown to more than $13 billion at the time of writing, up from about $8.9 billion at the beginning of the year.
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) leads the way with approximately $2.47 billion in assets, followed by Franklin Templeton’s OnChain US Government Money Fund with approximately $993 million and WisdomTree government money market fund with approximately $864 million.
In recent months, asset managers have expanded these products to include blockchain networks and trading models.
In November, Franklin Templeton integrated its Benji platform with the Canton Network, expanding the distribution of its tokenized money market fund to the institutional blockchain environment, while BlackRock in March expanded BUIDL to the Solana (SOL) blockchain.
In February, WisdomTree enabled 24/7 trading and instant settlement for its tokenized money market fund within a regulated framework.
However, as these products develop, modern challenges also arise. The Bank for International Settlements has warned that discrepancies between instantaneous token transfers and slower settlement of the underlying assets could create liquidity and contagion risks.
Warehouse: Bitcoin won’t reach $1 million by 2030, says veteran trader Peter Brandt
