Legal & General Asset Management has tokenized £50 billion worth of liquidity funds through Calastone’s blockchain distribution network, marking one of the largest traditional asset manager moves into tokenized money markets. The funds went live on April 15, 2026, with initial deployment on Ethereum and EVM-compatible chains.

The tokenized share classes cover funds denominated in US dollars, euros, and British pounds—all designed for capital preservation with same-day liquidity. They invest in short-term money market instruments including government bonds, bank deposits, and corporate debt.

How the Infrastructure Works

Calastone’s Tokenised Distribution platform, launched in April 2025, converts traditional fund shares into smart contract-powered tokens that automatically update with subscriptions and redemptions. The system handles token creation, order routing, trade aggregation, and onchain settlement while staying plugged into existing transfer agent systems.

For L&G, this means reaching blockchain-native investors without overhauling their fund structures. Traditional share classes remain available through conventional channels—the tokenized versions simply open a parallel distribution path.

Calastone’s network connects over 4,500 financial institutions across 56 markets globally. Orders initiated onchain flow through their infrastructure and get processed like any other transaction, which solves the operational headache that’s kept many asset managers on the sidelines.

Tokenized Treasuries Hit $13 Billion

The timing aligns with explosive growth in tokenized money market products. According to RWA.xyz data, tokenized US Treasury products have reached $13 billion in assets—up from $8.9 billion at the start of 2026.

BlackRock’s BUIDL fund leads with roughly $2.47 billion, followed by Franklin Templeton’s OnChain US Government Money Fund at $993 million and WisdomTree’s Government Money Market Digital Fund at $864 million.

Competition for distribution is heating up. Franklin Templeton integrated its Benji platform with the Canton Network in November 2025 for institutional access. BlackRock expanded BUIDL to Solana in March 2026. WisdomTree enabled 24/7 trading with instant settlement in February under SEC relief.

Regulatory Tailwinds and Risks

UK regulators are building toward a comprehensive crypto framework, with the Financial Conduct Authority consulting on custody and trading rules ahead of a planned 2027 rollout. That regulatory clarity gives asset managers like L&G more confidence to move forward.

But risks exist. The Bank for International Settlements has flagged potential liquidity and contagion problems when instant token transfers don’t match slower underlying asset settlement. If a tokenized money market fund faces redemption pressure, the mismatch between blockchain speed and traditional settlement could create stress.

L&G manages approximately £1.2 trillion across public and private markets. Their entry into tokenized distribution signals that major institutional players increasingly view blockchain infrastructure as production-ready rather than experimental.

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