Tokenization, or representing traditional assets such as money market funds backed by U.S. Treasuries through tokens on the blockchain, is becoming increasingly popular among traditional financial firms. Legal & General (L&G), a London-based pension and investment management firm with $1.5 trillion in assets under management, is planning to enter the blockchain-based tokenization space that is becoming increasingly popular among financial giants.
The trend has further accelerated as BlackRock, the world's largest asset manager, launched its BUIDL fund on the Ethereum blockchain. Other companies include Franklin Templeton, State Street and Abrdn. L&G executives said, "We are evaluating ways to offer the Legal & General Investment Management Liquid Fund in a tokenized form."