Legal & General Asset Management (L&G), the UK’s largest asset manager with £1.2 trillion ($1.6 trillion) in total AUM, has made its suite of liquidity funds available in tokenized form through the Calastone Tokenised Distribution (CTD) Network. The funds, which collectively manage over £50 billion ($68 billion), are now accessible as permissioned tokens on Ethereum and EVM-compatible blockchains. The launch marks one of the largest traditional fund ranges to go on-chain to date.
How the Tokenized Structure Works
Calastone, now part of SS&C Technologies, provides the full technology stack for the tokenized share classes, including token creation, order routing, trade aggregation, reconciliation, and on-chain settlement. The key design decision is that only the fund unit is tokenized. The underlying fund structure, administration, and servicing remain unchanged.
This means L&G does not need to rebuild its operating model. Investors who prefer traditional access can continue using existing channels with no disruption. Authorized users on the blockchain side can buy, hold, and instantly transfer tokens within a permissioned framework, bringing same-day settlement and capital preservation into a digital-native format.
The liquidity funds are available in three denominations: US Dollar, Euro, and British Pound. Additional blockchain networks are expected to be added over time as the platform scales.
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Where L&G Fits in the Tokenized MMF Landscape
L&G joins a growing list of major asset managers moving money market fund exposure on-chain. Franklin Templeton was among the first with its OnChain US Government Money Fund in 2021. BlackRock‘s BUIDL fund is now available across six blockchains including Ethereum, Aptos, Arbitrum, Avalanche, Optimism, and Polygon. Fidelity International tokenized one of its money market funds using JPMorgan’s Onyx Digital Assets blockchain in 2024.
The US tokenized MMF market has grown to over $1.8 billion, while tokenized US Treasuries expanded from $1.8 billion in July 2024 to $7.5 billion by July 2025. Calastone’s own research forecasts tokenized fund AUM could reach $235 billion by 2029, up from $4 billion in 2024.
Major Tokenized MMF Launches
| Asset Manager | Product / Platform | Blockchain(s) |
|---|---|---|
| L&G | Calastone CTD Network | Ethereum + EVM chains |
| BlackRock | BUIDL | ETH, Aptos, Arbitrum, Avalanche, Optimism, Polygon |
| Franklin Templeton | OnChain US Gov Money Fund | Stellar, Polygon |
| Fidelity International | JPMorgan Onyx | Onyx (private) |
Why Liquidity Funds Are the Entry Point for Tokenization
Money market funds have emerged as the natural first step for institutional tokenization because they combine three properties that translate well to on-chain infrastructure: capital preservation, same-day settlement, and competitive yield. For DeFi treasurers and stablecoin issuers who currently hold cash in traditional MMFs or bank deposits, tokenized versions offer a blockchain-native alternative without sacrificing the safety profile.
Calastone’s research supports this demand: 80% of DeFi platforms surveyed said tokenized MMFs could benefit their treasury management, and 75% of firms that have launched a tokenized fund reported benefits over traditional models, including improved automation and access to new customer segments.
Scale Meets On-Chain Rails
L&G’s move is significant not just for its size but for what it represents structurally. The firm is not launching a new digital-native product. It is wrapping a decades-old, £50 billion fund range in tokenized format and plugging it into blockchain distribution rails, while keeping the entire back-office unchanged. Calastone already serves 4,500 clients across 58 countries and processes over £250 billion in monthly investment value, giving the network immediate scale.
The broader tokenization market continues to accelerate. Total tokenized assets could exceed $400 billion by end of the year according to Hashdex estimates, driven by the same structural forces that propelled stablecoins into the mainstream. With L&G now on-chain alongside BlackRock, Franklin Templeton, and Fidelity, the tokenized fund landscape is no longer a pilot program. It is becoming core distribution infrastructure.
