Legal & General Asset Management (L&G AM) issued an official statement on Wednesday, announcing that it has completed the on-chain deployment of more than £50 billion (about $68 billion) in liquidity funds in the form of tokenized shares via a tokenized distribution network built through Calastone. According to the L&G AM statement, the funds above are currently supported in three quotation currencies: US dollars, euros, and British pounds.
Tokenized Fund Structure and Deployment Specifications
According to L&G AM’s official announcement on Wednesday, the tokenized assets for this on-chain deployment are money market-style liquidity funds, provided as tokenized shares on Calastone’s tokenized distribution network. The underlying infrastructure is Ethereum and compatible blockchains, and the plan is to expand to more networks; the specific timeline has not been announced.
L&G AM’s statement lists three core functions of the tokenized funds for this deployment:
Capital preservation: a liquidity fund structure designed to maintain stable principal
Same-day settlement (T+0): supports fast settlement on digital platforms
Multi-currency issuance: currently supports issuance denominated in US dollars, euros, and British pounds
In the statement, Ross McDonald, a liquidity investment expert at L&G, said, “Tokenized distribution significantly improves efficiency and coverage.”
Calastone Network Function Architecture and Regulatory Compliance Framework
According to the L&G AM announcement, in this tokenized distribution framework, the Calastone system takes on functions including token creation, order routing, transaction aggregation, and reconciliation, and it has the ability to integrate with existing fund management systems at the technical level. L&G AM’s statement indicates that investors must operate within an authorized network specifically designed for regulated access to ensure compliance with the current regulatory framework.
Simon Keefe, head of Calastone’s digital solutions, said this deployment demonstrates how tokenization technology can be applied to existing fund structures—“to enhance distribution, improve efficiency, and expand access within a controlled regulatory framework.”
Frequently Asked Questions
What is the specific date of L&G AM’s tokenization announcement?
According to L&G AM’s official statement, this announcement was formally released this Wednesday, covering the tokenization on-chain of liquidity funds with an asset size of over £50 billion (about $68 billion).
Which blockchain networks are the tokenized funds currently deployed on?
According to the L&G AM statement, the tokenized funds have been deployed on Ethereum and compatible blockchains. The company plans to expand to more networks later, but the specific timeline has not been disclosed in the announcement.
What technical roles does Calastone take on in this tokenized framework?
According to the L&G AM announcement, the Calastone system is responsible for token creation, order routing, transaction aggregation, and reconciliation, and provides technical integration capability with existing fund management systems, as well as the infrastructure for a regulated tokenized distribution network.
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