The British financial firm Legal & General has officially entered the realm of crypto tokenization to offer traditional assets as digital tokens.

L&G’s Approach to Crypto Tokenization

The company plans to tokenize traditional assets such as U.S. Treasury-backed market funds using blockchain technologies. This innovation aims to strengthen Legal & General's position in the shifting financial landscape.

Response from Other Financial Giants

BlackRock leads with its BUIDL fund on the Ethereum blockchain, targeting investments in cash and debt securities. Other firms like State Street and Abrdn are developing similar initiatives, highlighting a growing trend in the financial sector toward crypto tokenization.

Evolution and Innovation in Finance

Ed Wicks, the global trading head at Legal & General, emphasized the importance of examining liquidity funds in tokenized formats to improve efficiency and reduce operational costs. The company has been exploring blockchain since 2019, using it initially for bulk annual payment processing in insurance operations. The participation of major players like BlackRock and Franklin Templeton accelerates the integration of tokenization into mainstream financial products, indicating a collective shift towards innovation and digitization in traditional finance.

Crypto tokenization is gaining momentum among major financial institutions like Legal & General and BlackRock, offering new opportunities for digitalization and improving asset management efficiency.