Tokenization Gains Traction Among Traditional Financial Firms

According to Odaily, tokenization, which involves representing traditional assets like U.S. Treasury-backed money market funds through blockchain tokens, is becoming increasingly popular among traditional financial companies. Legal & General (L&G), a London-based pension and investment management firm overseeing $1.5 trillion in assets, is planning to enter the blockchain-based tokenization sector, a trend that is gaining favor among financial giants. This movement has been further accelerated by BlackRock, the world's largest asset manager, launching its BUIDL fund on the Ethereum blockchain. Other notable companies in this space include Franklin Templeton, State Street, and Abrdn. L&G executives have stated, 'We are evaluating ways to offer Legal & General Investment Management liquidity funds in tokenized form.'