Lizheng Group evaluates tokenized funds through blockchain technology

Legal & General (L&G), a British pension and investment management company headquartered in London, is actively exploring the use of blockchain technology to tokenize its funds. The company's investment arm, Legal & General Investment Management (LGIM), is one of the world's largest investment institutions with $1.5 trillion in assets under management. "We are evaluating ways to offer LGIM's liquidity fund in a tokenized form," Ed Wicks, LGIM's global head of trading, said in response to media inquiries.

Tokenization wave sweeps traditional financial institutions

Tokenization has become a major trend among traditional financial companies. The tokenization process has accelerated further since BlackRock, the world’s largest asset manager, launched its BUIDL fund based on the Ethereum blockchain. Others such as Franklin Templeton, State Street and Aberdeen have also been involved in the industry.

Ed Wicks emphasized: "The digitization of the fund industry is key to improving efficiency, reducing costs, and making more diverse investment solutions available to a wider range of investors. We look forward to continued progress in this industry."

The British government supports tokenization, and Lizheng Group is expected to seize the opportunity

In November 2023, a UK government working group working with the Treasury, financial regulator the Financial Conduct Authority (FCA), and investment managers like BlackRock gave the green light to tokenization of investment funds. The model allows FCA-authorized funds to use tokenization for sale and redemption transactions, subject to meeting certain criteria, such as the portfolio only containing mainstream investment assets and maintaining traditional valuation and settlement processes.

LGIM CEO Michelle Scrimgeour, who chaired the working group at the time, said: “Fund tokenization has huge potential to revolutionize the operations of our industry by improving efficiency and liquidity, enhancing risk management and creating more customized investment portfolios. approach. Keeping the UK at the forefront of technological development is vital.”

The origin of Lizheng Group and blockchain has broad market prospects

This is not Lizheng Group’s first foray into encryption technology. Back in 2019, the company worked with Amazon Web Services’ (AWS) blockchain platform to manage annuity transactions. An annuity transaction occurs when a company takes over a client's existing benefit or final salary pension plan.

Total assets under management in tokenized securities have now reached about $23 billion, according to data from asset management firm 21.co. BlackRock's BUIDL product currently leads the industry with approximately $5.51 billion in assets under management and a market share of approximately 24%. Additionally, BlackRock has recommended its $BUIDL token to cryptocurrency exchanges such as Binance, OKX, and Deribit for use in derivatives trading.

Image source: Dune Analytics 21.co ranks the top ten tokenized securities

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