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British Pension Giant L&G Aims to Enter the Tokenization Sphere

British Pension Giant L&G Aims to Enter the Tokenization Sphere

London-based company L&G, which manages assets valued at $1.5 trillion, is exploring the possibility of joining other major traditional players like BlackRock, Franklin Templeton, and Abrdn in offering blockchain-based money market funds. Tokenization, which involves representing conventional assets such as money market funds backed by U.S. Treasury bonds as tokens on a blockchain, has gained popularity among traditional financial institutions.

Ed Weeks, the Global Head of Trading at Legal & General Investment Management (LGIM), mentioned that the firm is exploring ways to make Legal & General Investment Management Liquidity funds available in a tokenized format. Weeks highlighted that digitizing the fund industry is crucial for enhancing efficiency, reducing costs, and providing a wider range of investment solutions to a broader audience of investors.

L&G's interest in blockchain technology began in 2019 when the firm announced plans to use Amazon Web Services' (AWS) managed blockchain system to manage and record bulk annuities for its insurance business.
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