Calastone Unveils Tokenized Fund Distribution Platform

Calastone, the largest global funds network, has launched a new platform allowing asset managers to easily tokenize their existing funds and distribute them across blockchain networks.

Known as Calastone Tokenised Distribution, the platform provides a simple route to reach blockchain-based investors without requiring changes to fund structures or operations, Calastone said in an announcement on Thursday.

"The investment world is changing fast," Julien Hammerson, CEO of Calastone, said. "New pools of capital are forming on blockchain networks, and they are not being accessed through traditional channels. Our Tokenised Distribution solution gives asset managers instant reach into these markets, without the requirement or need for transformation. We are making it easy to evolve with the market."

The service works by converting traditional fund shares into smart contract-powered tokens that are embedded directly onto blockchain networks like Ethereum, Polygon, and Canton. These tokens reflect the fund's details and automatically update with subscriptions and redemptions. By leveraging Calastone's existing global network of over 4,500 firms, asset managers can tokenize any share class and distribute it via public, hybrid, or private blockchains. Orders initiated on-chain are seamlessly processed through Calastone's infrastructure, the company said.

This offers several key benefits for asset managers, including the ability to tap into new pools of capital from corporate treasurers, stablecoin issuers, institutional crypto firms, and crypto-savvy retail investors. It also allows for expansion into blockchain-native channels without operational disruption, potential reduction in distribution costs through automation, and the ability to maintain existing service provider relationships.

The launch of Calastone Tokenised Distribution follows a recent study by the company which indicated that tokenization has the potential to unlock over $135 billion in annual cost savings for the asset management industry, while also accelerating fund launches and lowering seed capital requirements.