According to a report by CoinDesk, Legal & General (L&G), a London-based financial services group with $1.5 trillion in assets under management, is planning to enter the tokenization field 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:
“The digitization of the fund industry is crucial in 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.
Tokenization refers to representing traditional assets, such as US Treasury-backed money market funds, through tokens on the blockchain. This technology has been increasingly adopted by traditional financial companies in recent years. The trend accelerated after the launch of the BUIDL Fund on the Ethereum blockchain by BlackRock, a large asset management company.