Legal & General Asset Management, one of Europe’s largest asset managers, said on Tuesday that its liquidity fund range is now available on Calastone’s Tokenized Distribution network, making more than 50 billion pounds ($66 billion) of liquidity fund assets available in tokenized form through blockchain-enabled distribution rails.
The move brings tokenized versions of L&G’s U.S. dollar, euro, and sterling liquidity funds to the network, initially across Ethereum and other EVM-compatible blockchains. The funds, part of L&G Global Markets, are designed for capital preservation, same-day settlement, and yield on short-term cash holdings.
The launch is the latest sign that large fund managers are testing tokenized wrappers around traditional products, particularly in cash-management strategies where instant transfer and round-the-clock settlement are seen as potential advantages.
L&G explained that the tokenized share classes are offered alongside their current funds instead of taking the place of traditional ways to invest, and they noted that this move into tokenized distribution is based on controlled access, letting approved users “buy, hold, and transfer tokens within a regulated framework.”
What the Calastone Network Does
Calastone, which was acquired by SS&C Technologies, operates a global funds network connecting asset managers, distributors, and service providers through a single infrastructure layer.
Its tokenized distribution, or CTD, network is designed to let asset managers tokenize existing funds without changing how those funds are structured, administered, or serviced. According to L&G, the system supports token creation, order routing, trade aggregation, reconciliation, and on-chain settlement while integrating with existing fund administration and transfer-agent processes.
That means fund managers can issue tokenized share classes and distribute them through blockchain-based channels without overhauling their existing operating setup. L&G said access to the network is permissioned, allowing only authorized users to buy, hold, and transfer tokenized units within a regulated framework.
Established Firms Bring Cash Products On-Chain
L&G’s move follows a broader push by large asset managers to bring cash-like fund products onto blockchain rails. BlackRock launched its BUIDL tokenized fund on Ethereum in 2024, offering exposure to cash, Treasury bills, and repo, while Franklin Templeton has offered blockchain-based access to its Franklin On-Chain U.S. Government Money Fund through its BENJI platform. J.P. Morgan Asset Management also launched its tokenized money market fund, MONY, in late 2025.
For L&G, the move is part of a broader digital distribution push rather than a shift away from traditional fund infrastructure. The company is betting that tokenization can widen access to liquidity products while preserving the operational model already used by institutional investors.
