L&G Shifts $68B in Liquidity Funds to Calastone Token Network for Same-Day Settlement

Key Takeaways

• Legal & General (L&G) has moved over £50 billion ($68 billion) of liquidity assets to Calastone’s DLT-based distribution network.
• The migration enables same-day settlement across USD, EUR, and GBP denominations using Ethereum-compatible infrastructure.
• The move aims to bridge the gap between “investment assets” and “collateral assets” for institutional treasurers.

Legal & General Asset Management, the UK’s largest fund manager with £1.2 trillion under management, has transitioned more than £50 billion ($68 billion) of its liquidity fund assets onto the Calastone Tokenized Distribution Network. The move shifts the infrastructure for these decades-old money market funds (MMFs) onto blockchain rails to eliminate traditional settlement delays.

The tokenized shares, issued on Ethereum and other EVM-compatible networks, allow authorized institutional investors to buy, hold, and transfer units within a regulated, permissioned environment. L&G confirmed that traditional share classes will continue to exist alongside the new digital versions to maintain continuity for legacy clients.

Liquidity Mobility and Collateral Efficiency

For institutional treasurers, the primary value of the migration lies in capital mobility. Traditional MMF settlement cycles often involve batch-based processes that prevent capital from being redeployed instantly. By moving these assets on-chain, L&G and Calastone are enabling “atomic” or same-day settlement.

“Tokenized distribution provides meaningful enhancements in efficiency and reach,” Ross McDonald, liquidity investment specialist at L&G, told CoinDesk. This infrastructure is designed to allow MMFs to serve as active collateral. Instead of sitting idle, tokenized units can be mobilized intraday for margin calls or automated settlement, reducing the need for firms to maintain large, non-earning cash buffers.

Scaling the “Walled Garden”

While the underlying technology utilizes public blockchain standards (EVM), the network itself remains a permissioned ecosystem. This “walled garden” approach ensures that all participants meet KYC (Know Your Customer) and AML (Anti-Money Laundering) requirements while benefiting from the transparency of a shared ledger.

The $68 billion migration marks a significant escalation in the real-world asset (RWA) tokenization space. Unlike smaller-scale pilots seen in 2024 and 2025, the L&G deployment utilizes existing, high-volume fund structures. By supporting USD, EUR, and GBP, the network addresses the cross-border liquidity needs of global financial institutions.

This development follows L&G’s earlier partnership with the regulated exchange Archax in 2024. The shift to Calastone’s network suggests a strategic pivot toward using global distribution hubs to scale digital asset adoption among conservative institutional players.

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