#Blockchain #London #United Kingdom #Calastone #Tokenised Distribution

Calastone's Revolutionary Tokenised Distribution Solution

Calastone, the world's largest global funds network, has made significant strides in the financial landscape with the announcement of its new Tokenised Distribution solution. This innovative offering is designed to help asset managers embrace the future of fund distribution by seamlessly allowing them to tokenise any fund operating within Calastone's expansive network. Through this solution, managers can distribute their funds effortlessly via blockchain-based channels, catering to an evolving pool of investors.

Simplifying Fund Tokenization

The Calastone Tokenised Distribution service simplifies the tokenization process, eliminating the need for asset managers to modify their existing fund structures or management practices. With just a single step, they can access a growing universe of investors who operate solely within blockchain ecosystems.

Adam Belding, Calastone's Chief Technology Officer, expressed the potential of this new service, stating, “Calastone's Tokenised Distribution provides asset managers with a powerful new marketing channel. We enable the distribution of existing funds through blockchain networks instantly and on a large scale, without any operational disruption or technical overhaul.” This innovation effectively bridges the gap between traditional investment funds and blockchain-native networks, including popular platforms like Ethereum, Polygon, and Canton, which are gaining traction among a rapidly growing investor audience.

Targeting New Investor Groups

The solution addresses the needs of several investor categories that traditional distribution channels may overlook. This includes corporate treasurers managing large cash balances seeking yield and efficiency, stablecoin issuers and institutional crypto firms looking for regulated investment options without converting to fiat currencies, and retail investors experienced in cryptocurrencies who want access to traditional assets via the same digital wallets and infrastructure used for their digital assets.

By incorporating tokenised fund shares into these blockchain networks, asset managers can directly tap into new capital pools while maintaining existing processes and partnerships.

Leveraging Existing Infrastructure

One of the key advantages of Calastone's Tokenised Distribution is its utilization of Calastone's existing global network, featuring over 4,500 firms across 56 markets. This framework permits any share class within the network to be tokenised and distributed through public, hybrid, or private blockchains. Orders initiated on the chain are translated and processed automatically through Calastone's infrastructure, ensuring complete compatibility with traditional fund operations.

This development allows asset managers to:
1. Seamlessly expand into blockchain-native investment channels without operational disruptions.
2. Reduce distribution costs through automation and smart contracts.
3. Maintain relationships with existing service providers.
4. Position themselves for an enduring competitive advantage in a rapidly evolving investment landscape.

A Cost-Effective Solution

Following a recent study, Calastone revealed that tokenization could unlock over $1.351 billion in annual cost savings for the asset management sector, while also accelerating fund launches and reducing initial capital requirements. Julien Hammerson, CEO of Calastone, commented on the transformative potential of this solution, saying, “The investment landscape is changing rapidly. New capital funds are being formed within blockchain networks that aren’t accessible through traditional avenues. Our Tokenised Distribution solution provides asset managers with instant access to these markets without the need for transformation. We facilitate evolution within the marketplace.”

In essence, Calastone Tokenised Distribution transforms eligible fund shares into smart contract-based tokens, seamlessly integrated into blockchain networks. These tokens encapsulate comprehensive fund information and operate on inherent security protocols, automatically minting and burning according to real-time subscriptions and redemptions.

About Calastone

Calastone stands at the forefront of financial innovation as the largest global funds network, connecting leading financial organizations globally. The firm's mission focuses on reducing complexity, risk, and costs, ultimately enhancing value for investors. With over 4,500 clients across 56 countries managing more than £250 billion in investments monthly, Calastone is headquartered in London with offices in Luxembourg, Hong Kong, Taipei, Singapore, New York, and Sydney.

In conclusion, the launch of Calastone's Tokenised Distribution solution marks a monumental shift in how funds are managed and distributed, allowing asset managers to navigate the blockchain age with confidence and ease.