Calastone, the largest global funds network, has unveiled its latest innovation: the
Calastone Tokenised Distribution. This groundbreaking solution is designed to empower asset managers by enabling them to tokenize any fund operating on Calastone's platform and distribute these digital tokens through blockchain-based channels.
The launch marks a significant advancement in the evolution of fund distribution, providing an uncomplicated and frictionless access point to tokenization. Perhaps most importantly, it eliminates the need for asset managers to alter the structure, administration, or management of their funds. In just one straightforward step, fund managers can tap into a rapidly expanding universe of investors who exclusively operate within the blockchain ecosystem.
Adam Belding, Technology Director at Calastone, emphasized the transformative impact of their tokenised distribution solution, stating, "This new approach offers asset managers robust access to the market. We are enabling the distribution of existing funds through blockchain networks, instantly and at scale, without any operational disruption or technical reinvention."
The solution creates a vital link between traditional investment funds and native blockchain networks such as Ethereum, Polygon, and Canton, which are increasingly preferred for investment activities conducted with digital assets. These networks cater to a burgeoning category of investors that conventional distribution channels often overlook, such as:
- - Corporate Treasurers managing significant cash balances on-chain in pursuit of yield and efficiency.
- - Stablecoin Issuers and Institutional Cryptocurrency Firms seeking regulatory investment options without converting to fiat currencies.
- - Retail and Experienced Cryptocurrency Investors who wish to access traditional assets through the same digital wallets and infrastructures used for digital assets.
By integrating tokenized fund shares into these blockchain networks, asset managers gain direct access to new capital pools without disturbing existing processes or partnerships. This innovative solution leverages Calastone's existing global network, which spans over 4,500 businesses across 56 markets, allowing any share class on the network to be tokenized and distributed through public, hybrid, or private blockchains. Orders executed on-chain are automatically translated and processed through Calastone's infrastructure, ensuring full compatibility with traditional fund operations.
With this rollout, asset managers can:
- - Expand to blockchain-native investor channels without operational disruption.
- - Reduce distribution costs via automation and smart contracts.
- - Maintain relationships with service providers.
- - Position themselves for a long-term competitive advantage in an ever-evolving investment ecosystem.
This launch comes on the heels of a recent study by Calastone indicating that tokenization could yield annual savings exceeding
$1.35 trillion for the asset management sector. Additionally, it accelerates fund launch capabilities while reducing seed capital requirements.
Julien Hammerson, CEO of Calastone, noted the rapid evolution within the investment landscape, stating, "New capital reserves are forming within blockchain networks, and access to them is rarely achieved through traditional channels. Our tokenised distribution solution enables asset managers to instantly access these markets without necessitating transformation. We are making it easier to evolve with the market."
Through the Calastone Tokenised Distribution, eligible fund shares are converted into tokens powered by smart contracts and directly integrated into blockchain networks. These tokens encapsulate all fund details, work with embedded security protocols, and are automatically minted and burned in real-time according to subscriptions and redemptions.
About Calastone
Calastone is the world’s largest funds network, connecting leading financial organizations globally. Its mission is to reduce complexity, risk, and costs, enabling the sector to provide greater value to investors. With over 4,500 clients in 56 countries and territories, Calastone processes over
250 billion GBP in investment value each month. Headquartered in London, the company also has offices in Luxembourg, Hong Kong, Taipei, Singapore, New York, and Sydney.