London-based Legal & General, a major UK investment manager, plans to enter the fast-growing blockchain-based asset tokenization market.

Introduction to Asset Tokenization

Tokenization is the process by which traditional assets—such as money-market funds backed by U.S. Treasuries—are digitized into tokens on a blockchain. This trend is growing among financial giants.

Legal & General's Aims and Plans

Ed Wicks, the global head of trading at Legal & General Investment Management, stated that the firm is considering making their liquidity funds available in a tokenized format. This move aims to enhance efficiency, reduce costs, and increase the availability of investment solutions.

History and Prospects of L&G Ventures

L&G Ventures has been involved with blockchain research since 2019. Back then, they announced using AWS's managed blockchain system to manage and record annuities for their insurance operations. This indicates their commitment to innovation and recognition of blockchain's transformative potential.

With the increased popularity of asset tokenization, L&G Ventures positions itself as a key player in this evolving field.