Press Release: L&G Liquidity Funds Now Live on SS&C’s Calastone Tokenised Distribution Network

Why It Matters

Tokenising a major liquidity fund portfolio expands digital distribution, lowers operational friction and meets growing demand for blockchain‑based investment products. It signals mainstream asset managers’ confidence in regulated tokenisation as a growth engine.

Key Takeaways

• L&G tokenises £50bn (£≈$62.5bn) liquidity assets on Calastone network
• Tokens launch on Ethereum and EVM‑compatible blockchains initially
• Tokenised funds offer same‑day settlement, capital preservation, competitive yields
• Permissioned access ensures regulated buying, holding, instant transfers
• Calastone’s platform integrates order routing, trade aggregation, on‑chain settlement

Pulse Analysis

The tokenisation of Legal & General's liquidity funds marks a watershed moment for traditional asset managers venturing into blockchain‑enabled distribution. By converting over £50 billion of liquid assets into digital tokens, L&G taps into a burgeoning market of tech‑savvy investors seeking instant settlement and transparent ownership records. This initiative aligns with a broader industry trend where firms leverage tokenised structures to enhance liquidity, reduce settlement cycles, and broaden their reach beyond conventional distribution channels.

At the heart of the rollout is the Calastone Tokenised Distribution (CTD) Network, a platform built by SS&C that marries legacy fund administration with decentralized ledger technology. The network handles token creation, order routing, trade aggregation and on‑chain settlement, all within a permissioned framework that satisfies regulatory requirements. Deploying the tokens on Ethereum and other EVM‑compatible blockchains ensures compatibility with existing DeFi infrastructure while maintaining the security and scalability needed for institutional investors.

For the market, L&G's move underscores the commercial viability of tokenised fund share classes. Investors gain same‑day settlement, capital preservation and competitive yields without sacrificing the familiarity of traditional fund structures. Regulators see a controlled, permissioned environment that mitigates risk, while asset managers anticipate lower operational costs and new revenue streams from digital channels. As more firms adopt similar models, tokenisation could become a standard distribution layer, reshaping how liquidity products are offered and accessed globally.