Legal & General Asset Management (L&G) announced the launch of a range of tokenized liquidity funds via blockchain platform Calastone Tokenised Distribution (CTD) Network.
Legal & General Asset Management (L&G), one of the U.K.’s largest asset management firms and part of Legal & General Group, expanded the distribution channels of its financial instruments through tokenization. The goal of the initiative is to attract new categories of investors without changing existing operational processes.
L&G’s money market funds will be tokenized via the CTD Network blockchain platform, which is designed for the distribution of investment funds. The platform was developed by FinTech company Calastone, which provides fund transaction processing infrastructure and is part of SS&C Technologies, a major U.S. provider of software and services for the financial industry.
The CTD Network enables token issuance, order routing, trade aggregation, and settlement in an on-chain environment with integration into traditional fund administration infrastructure. The solution allows investors to access L&G liquidity management strategies through digital channels while maintaining established security and regulatory standards.
Tokenization will cover dollar-, euro-, and pound sterling-denominated money market funds focused on capital preservation, same-day settlement, and competitive yields. L&G’s total assets under management exceed £50 billion, and these products are now being made available in tokenized form.
Access to the tokenized funds is provided in a restricted environment. Authorized participants can purchase, hold, and instantly transfer tokens within a regulated infrastructure. Traditional investors will continue to access the funds in the standard format without any changes.
In the first phase, tokens will be issued on Ethereum and EVM-compatible blockchains. Additional supported networks are expected to be added later. According to Ross MacDonald, Liquidity Investment Specialist at L&G, the initiative represents a step toward scaling digital channels and improving the efficiency of investment product distribution.
Over the past six months, tokenized money market fund projects have also been launched by units of major financial groups including BNP Paribas and JPMorgan, as well as asset manager Amundi. All three initiatives were implemented on the Ethereum blockchain ecosystem, which is becoming a key infrastructure layer for the agent economy. At the same time, BIS analysts warn that tokenized money market funds may increase systemic risks within the crypto ecosystem.
