British asset manager Legal & General Asset Management (LGIM) has migrated more than £50 billion (about $68 billion) of its liquidity funds onto a blockchain-based network run by Calastone, marking one of the largest tokenization moves to date in traditional finance.
The firm confirmed the shift on April 16, saying the funds are now connected to Calastone’s distributed ledger infrastructure, which is designed to cut costs and speed up fund dealing and settlement.
How the migration works
Michelle McDonald, who heads liquidity investment at LGIM, said linking the funds to Calastone’s tokenized network is expected to lift operational efficiency and widen distribution.
Under the new model, existing fund units are converted into digital tokens and recorded on Calastone’s blockchain system. Those tokens can then be issued, transferred and settled through Calastone’s network, instead of relying solely on legacy fund-processing platforms.
Calastone’s blockchain fund platform
Calastone operates one of the world’s largest fund transaction networks and has recently embedded blockchain technology to support tokenized fund distribution.
By using distributed ledgers, Calastone says asset managers can issue and transfer fund shares at lower cost, with faster settlement times and more automated processing. The firm positions the platform as a bridge between traditional fund structures and on-chain finance.
Part of a broader institutional tokenization push
LGIM’s move comes amid accelerating adoption of tokenization across global finance. Industry data shows that more than $130 billion in assets has already been tokenized, with large institutions such as BlackRock and Franklin Templeton rolling out their own blockchain-based products.
These initiatives now cover not only digital-native assets, but also government bonds, money market funds and other traditional securities, signalling that core building blocks of the financial system are starting to move on-chain.
Analysts see this as laying the groundwork for large-scale institutional tokenization, with the potential to reshape how assets are issued, traded and settled, and to broaden access to real-world assets recorded on distributed ledgers.
Rapid growth in tokenized real-world assets
The market for tokenized real-world assets has expanded sharply, reaching more than $29.2 billion by mid-April 2026. Within that, tokenized U.S. Treasuries alone have surpassed $13.5 billion in value, highlighting strong demand for stable, government-backed instruments on blockchain rails.
Longer-term projections underscore the scale of the shift. Research from groups including Boston Consulting Group suggests the overall tokenized asset market could approach $16 trillion by 2030 if adoption continues to accelerate.
Spotlight on money market funds
Money market funds are emerging as a focal point. By bringing highly liquid, interest-bearing instruments on-chain, tokenization embeds a yield-generating, cash-like layer directly into digital markets.
BlackRock chief executive Larry Fink has argued that the “next generation” of markets will involve the tokenization of a wide range of securities, from bonds to equities and funds. The current wave of tokenized money market products reflects that outlook.
BlackRock and Franklin Templeton as key examples
BlackRock’s tokenized liquidity fund, BUIDL, has surpassed $1 billion in market capitalization since launch. The product has been integrated with decentralized finance (DeFi) protocols, allowing on-chain users to gain exposure to institutional-grade assets and associated yields.
Franklin Templeton’s OnChain U.S. Government Money Fund has also gained traction, holding more than $843 million in assets at the end of March 2026. It packages low-risk U.S. government securities in a tokenized format that can be held and transferred on blockchain networks.
From ownership to collateral and strategy
The utility of these tokenized instruments is evolving beyond simple digital representation of ownership. They are increasingly used as high-quality collateral within on-chain lending and borrowing platforms.
By embedding U.S. Treasuries and similar instruments into these systems, tokenization brings the “risk-free” reference rate from traditional markets into DeFi structures. This allows traders and institutions to design strategies that combine government bond yields with the operational advantages of blockchain, such as 24/7 settlement and programmable cash flows.
Tighter link between on-chain markets and macroeconomy
As more real-world assets move onto distributed ledgers, on-chain market behavior is likely to become more sensitive to macroeconomic conditions, including central bank interest rate decisions and government funding needs.
The build-out of this tokenized infrastructure is creating a new layer that directly connects the digital asset ecosystem with the broader global economy. LGIM’s £50 billion transition onto Calastone’s blockchain network is the latest sign that major players in traditional finance are treating tokenization as a core component of future market structure.
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