According to a report by CoinDesk, London-based financial services group Legal & General (L&G), with assets under management of $1.5 trillion, is planning to enter the tokenization space based on blockchain technology.
Ed Wicks, Global Head of Trading at Legal & General Investment Management (LGIM), a subsidiary of L&G, stated when asked about the company’s plans:
Wicks also stated that digitization in the fund industry is key to improving efficiency, reducing costs, and providing diversified investment solutions to a wider range of investors. “We look forward to continued progress in this field.”
L&G’s involvement in blockchain technology dates back to 2019 when the company announced plans to use Amazon Web Services (AWS), a cloud computing division of Amazon, for managing and recording its bulk annuity business using blockchain systems.
Tokenization refers to representing traditional assets (such as currency market funds backed by US Treasury bonds) through tokens on the blockchain. This technology has been increasingly adopted by traditional financial companies in recent years, with the trend accelerating after large asset management firm BlackRock launched the BUIDL Fund on the Ethereum blockchain.
