Calastone Launches Tokenised Distribution Solution for Asset Managers in London
Calastone, the largest global funds network, has unveiled its groundbreaking Calastone Tokenised Distribution solution in London. This innovative service allows asset managers to tokenize any fund operating on Calastone’s network and distribute it seamlessly across blockchain-based channels.
Adam Belding, Chief Technology Officer at Calastone, emphasized the significance of this launch, stating, “Calastone Tokenised Distribution offers asset managers a powerful new route to market. We make it possible to distribute existing funds via blockchain networks, instantly and at scale, without any operational upheaval or technical reinvention.”
The solution bridges the gap between traditional investment funds and blockchain-native networks such as Ethereum, Polygon, and Canton. These networks are attracting a fast-growing class of investors, including corporate treasurers, stablecoin issuers, institutional crypto firms, and crypto-experienced retail and wealth investors.
By embedding tokenized fund shares into blockchain networks, asset managers gain direct access to new pools of capital without disrupting existing processes or partnerships. This enables them to expand into blockchain-native investor channels, reduce distribution costs, maintain existing service provider relationships, and position themselves for long-term advantage in an evolving investment landscape.
Calastone’s Tokenised Distribution leverages its existing global network, spanning over 4,500 firms across 56 markets, to enable any share class on the network to be tokenized and distributed via public, hybrid, or private blockchains. Orders initiated on-chain are automatically translated and processed through Calastone’s infrastructure, ensuring full compatibility with traditional fund operations.
The launch of this solution follows a recent Calastone study showing that tokenization could unlock over $135 billion in annual cost savings for the asset management industry while accelerating fund launches and lowering seed capital requirements.
Julien Hammerson, CEO of Calastone, highlighted the importance of adapting to the changing investment landscape, stating, “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 for transformation. We are making it easy to evolve with the market.”
At its core, Calastone Tokenised Distribution converts eligible fund shares into smart contract-powered tokens embedded directly onto blockchain networks. These tokens reflect the fund’s full details, operate with built-in security protocols, and automatically mint and burn in line with real-time subscriptions and redemptions.
In conclusion, Calastone’s Tokenised Distribution solution presents a significant opportunity for asset managers to tap into new investor channels, reduce costs, maintain relationships, and position themselves for long-term success in the evolving investment landscape. It offers a seamless and innovative way for asset managers to adapt to the changing market dynamics and unlock new opportunities for growth and expansion. For more information, visit the Calastone website.