Legal & General Partners with Calastone for Tokenized Liquidity Funds

Legal & General Asset Management has taken a significant step in digitalizing its liquidity funds by partnering with Calastone's blockchain-based distribution network. This move allows investors to access and transfer fund shares digitally, reducing the need for traditional settlement systems.

The tokenized share classes are issued with permissioned access, allowing authorized users to buy, hold, and transfer them within a regulated environment. This is particularly useful for funds that require high liquidity, such as those invested in short-term money market instruments like government bonds and corporate debt.

Calastone's network provides infrastructure for token creation, order routing, trade aggregation, reconciliation, and on-chain settlement, integrated with existing transfer agent and fund administration systems. The network connects over 4,500 financial institutions globally, further expanding the reach of Legal & General's liquidity funds.