UK Pension Giant L&G Ventures into Crypto with Tokenized Funds

Legal & General (L&G), a leading UK-based pension and investment management firm with $1.5 trillion in assets under management, has announced its entry into the burgeoning world of blockchain-based tokenization. This move aligns L&G with other financial giants such as BlackRock and Franklin Templeton, who have already made significant strides in this innovative space.

Tokenization involves converting conventional assets, like money-market funds backed by U.S. Treasuries, into digital tokens on a blockchain. This technology promises to enhance efficiency, reduce costs, and broaden access to a variety of investment solutions.

🇬🇧 LATEST: UK pension giant L&G ($1.5T AUM) is entering crypto by offering tokenized funds, joining the likes of BlackRock and Franklin Templeton pic.twitter.com/drAEDCn1az

— Cointelegraph (@Cointelegraph) October 21, 2024

Ed Wicks, Global Head of Trading at Legal & General Investment Management (LGIM), emphasized the importance of digitization in the funds industry, stating, “Digitization of the funds industry is key to improving efficiency, reducing cost, and making a broad range of investment solutions available to a wider range of investors. We look forward to continued progress in this space”.

L&G’s interest in blockchain technology is not new. The firm has been exploring its potential since 2019, initially using Amazon Web Services’ managed blockchain system to manage and record bulk annuities for its insurance business. This latest venture into tokenized funds marks a significant step forward in their digital transformation journey.

By joining the ranks of BlackRock, Franklin Templeton, and other major players, L&G is positioning itself at the forefront of financial innovation.

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