The liquidity funds of Legal & General Asset Management have been made available on the Calastone Tokenised Distribution Network.
The CTD Network was built to connect traditional fund products with digital distribution channels, and enables investors to access L&G’s liquidity strategies in tokenised form via blockchain enabled infrastructure.
Calastone, part of SS&C Technologies, provides the underlying technology for token creation, order routing, trade aggregation, and on chain settlement functionality.
This approach is intended to allow L&G to expand distribution reach while continuing to provide a strong service to investors. L&G currently manages over £50 billion in liquidity assets.
Ross McDonald, a liquidity investment specialist at L&G, says: “This launch represents another important step in our digital asset journey as we continue to expand the ways investors can access our strategies. Tokenised distribution provides meaningful enhancements in efficiency and reach, and we are excited to partner with Calastone as we accelerate innovation across our liquidity franchise.”
Within L&G Global Markets, liquidity funds are available in US Dollar, Euro and Pound Sterling and aim to provide investors with capital preservation, same day settlement, and a competitive yield.
Tokenised versions of the L&G funds will initially be available on Ethereum and EVM compatible blockchains with a wider range of chains expected to be made available over time.
In 2024, Fidelity International tokenised one of its money market funds using JPMorgan’s Onyx Digital Assets blockchain.
Blackrock has one of the largest tokenised money market funds, known as BUIDL. It is available on six blockchains; Ethereum, Aptos, Arbitrum, Avalanche, Optimism’s OP Mainnet & Polygon.