Legal & General Asset Management, the £1.2trn manager, has announced that its suite of liquidity funds is now available on the Calastone Tokenised Distribution (CTD) Network.
The Network facilitates connection between traditional fund products with digital distribution channels. It enables investors to access L&G AM’s liquidity strategies in tokenised form via blockchain enabled infrastructure.
Calastone, now part of SS&C Technologies, provides the underlying technology for token creation, order routing, trade aggregation, reconciliation and on chain settlement functionality, seamlessly integrating with existing fund administration processes.
The liquidity funds are available in dollar, euro and sterling denominations, and form part of L&G AM’s £50bn of liquidity assets provision, now available in tokenised format. L&G AM noted that tokenisation leads to accessibility for new digital investor segments and “supports evolving client preferences for efficient digital solutions”.
The tokenised distribution is built upon so-called permissioned access, allowing authorised users to buy, hold and instantaneously transfer tokens within a regulated framework.
Calastone noted that its technology is “designed to integrate with existing settlement and transfer agent infrastructure, enabling L&G to offer tokenised share classes of existing funds with minimal additional operational complexity and no impact for investors continuing to access the funds via traditional methods.”
Tokenised versions of the funds will initially be available on Ethereum and EVM compatible blockchains with a wider range of chains to be available over time.
Ross McDonald, Liquidity Investment specialist, L&G, commented: “We are thrilled to make our liquidity funds available on the Calastone Tokenised Distribution Network. 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.”
Simon Keefe, head of Digital Solutions, Calastone, added: “We are pleased to partner with L&G to make their liquidity funds available on SS&C’s Calastone Tokenised Distribution Network. This launch demonstrates how tokenisation can be applied to established fund structures to enhance distribution, improve efficiency and broaden access within a controlled, regulated framework. We look forward to supporting L&G as they continue to expand their digital distribution capabilities.”
