UK-Based Giant Pension and Investment Company Prepares to Enter the Blockchain World
Legal & General (L&G), a prominent UK-based pension and investment management firm with $1.5 trillion in assets, is getting ready to enter the world of blockchain-based tokenization. This move follows the footsteps of other leaders in the traditional finance industry, including BlackRock, Franklin Templeton, and Abrdn.
L&G’s decision to explore tokenization comes as the financial sector increasingly recognizes its potential to enhance efficiency, reduce costs, and provide access to a wider range of investors. Tokenization involves representing traditional assets, such as money market funds backed by U.S. Treasuries, through blockchain-based tokens.
Several global financial institutions have already embraced tokenization. For instance, BlackRock has its BUIDL fund on the Ethereum blockchain, while State Street and Franklin Templeton have launched tokenized financial products.
L&G’s asset management arm, Legal & General Investment Management (LGIM), is currently assessing the possibility of offering liquidity funds in tokenized form. Ed Wicks, LGIM’s global head of trading, believes that digitalizing the funds industry is crucial for improving efficiency, reducing costs, and expanding investment solutions.
It is worth noting that L&G has shown interest in blockchain technology before. In 2019, the company announced its plans to utilize Amazon Web Services (AWS) blockchain infrastructure for managing and recording bulk annuities in its insurance operations.
Please note that this is not investment advice.
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