London-based L&G, which has assets worth $1.5 trillion, is looking to join other major traditional players such as BlackRock, Franklin Templeton and Abrdn in offering blockchain-based money market funds. Tokenization, or representing conventional assets such as U.S. Treasury-backed money market funds through tokens on the blockchain, has become popular among traditional financial firms.
The company is exploring ways to make Legal & General Investment Management liquidity funds available in a tokenized format, said Ed WICKS, global head of trading at Legal & General Investment Management (LGIM). Digitizing the fund industry is key to improving efficiency, reducing costs and providing a wider range of investment solutions to a wider range of investors, Wicks said.
L&G’s interest in blockchain technology began in 2019, when the company said it planned to use the Amazon Web Services (AWS) managed blockchain system to manage and record bulk annuities for its insurance business.
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