#Blockchain #London #United Kingdom #Calastone #Tokenized Distribution

Calastone Introduces Tokenized Distribution Solution

In a significant advancement for the fund management industry, Calastone, the largest global network for funds, has announced its latest innovation: Tokenized Distribution. This pioneering solution allows asset managers to seamlessly tokenize every fund operating within the Calastone network and distribute them effortlessly through blockchain-based channels. With this groundbreaking service, fund managers can gain access to a rapidly expanding universe of investors engaged exclusively in blockchain ecosystems.

Simplifying Access to Blockchain Markets

The introduction of Calastone Tokenized Distribution facilitates a straightforward entry into the world of tokenization, enabling asset managers to engage with new investment opportunities without altering the structure, governance, or servicing of their existing funds. Adam Belding, the Chief Technology Officer at Calastone, emphasized the advantages of the new solution by stating, “Calastone Tokenized Distribution provides asset managers with a powerful new route to market. We enable immediate and scalable distribution of existing funds through blockchain networks without causing operational disruptions or requiring technical upheavals.”

This innovative solution acts as a bridge between traditional investment funds and blockchain-native networks like Ethereum, Polygon, and Canton, where investment activities are increasingly transacted and settled with digital assets. These networks are capturing a rapidly growing investor segment that cannot be reached through conventional distribution channels.

• - Corporate Treasurers manage substantial cash reserves along the chain to optimize returns and efficiency.
• - Stablecoin issuers and institutional crypto firms are searching for regulated investment avenues without the necessity to convert to fiat currencies.
• - Crypto-savvy retail investors and asset managers are keen to access traditional assets utilizing the same wallets and digital infrastructures they employ for digital asset transactions.

Direct Access to New Capital Pools

By embedding tokenized fund shares into applicable blockchain networks, asset managers gain direct access to innovative capital pools without disrupting existing partnerships or processes. Leveraging Calastone's established network, which encompasses over 4,500 companies across 56 markets, asset managers can tokenize any share class within that network and distribute them across public, hybrid, or private blockchains. Orders initiated on the blockchain are automatically translated and processed within the Calastone infrastructure, ensuring complete compatibility with traditional fund transactions.

Key Benefits of Tokenized Distribution

This solution allows asset managers to:

• - Expand into blockchain-native investor channels without operational interruptions.
• - Reduce distribution costs through automation and smart contracts.
• - Maintain existing relationships with service providers.
• - Position themselves for long-term advantages within an evolving investment landscape.

Calastone's market entrance aligns with a recent study indicating that tokenization could yield over $135 billion in annual cost savings for the asset management sector, while simultaneously accelerating fund launches and lowering the requirements for startup capital. Julien Hammerson, CEO of Calastone, noted, “The investment world is changing rapidly. New capital pools are emerging within blockchain networks that cannot be tapped through traditional channels. Our tokenized distribution solution allows asset managers immediate access to these markets, all without the need for transformational changes. We make it simple to scale with the market.”

Transformative Technology

At its core, Calastone's tokenized distribution converts eligible fund shares into smart contract-based tokens that are directly embedded within blockchain networks. These tokens reflect all details of the funds, operate with built-in security protocols, and are automatically minted and burned in compliance with real-time subscriptions and redemptions.

About Calastone

Calastone stands as the largest global funds network linking leading financial institutions worldwide. Our mission is to reduce complexity, risk, and cost, enabling the industry to deliver greater value for investors. More than 4,500 clients across 56 countries benefit from Calastone's services, processing over £250 billion in investment value every month. Headquartered in London, Calastone has offices in Luxembourg, Hong Kong, Taipei, Singapore, New York, and Sydney.

For further information regarding the transformative potential of Calastone's Tokenization, visit their website at Calastone Tokenisation Research.