Calastone unveils blockchain fund distribution solution

Calastone has announced the launch of Calastone Tokenised Distribution, a solution enabling asset managers to tokenise funds on its network for distribution through blockchain-based channels.

The newly launched service provides a pathway into tokenisation for asset managers without necessitating changes to the current structuring, administration, or servicing of their funds. This approach allows asset managers to access investors within blockchain ecosystems.

Adam Belding, Chief Technology Officer at Calastone, said, "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 traditional investment funds with blockchain-native networks such as Ethereum, Polygon, and Canton. These networks are increasingly preferred for investment activities and attract investors not typically reached by traditional distribution channels, including corporate treasurers and stablecoin issuers.

This development offers asset managers an opportunity to access capital from new investor classes, such as crypto-experienced retail and wealth investors, who seek seamless access to traditional assets through digital wallets and infrastructures.

By embedding tokenised fund shares within these blockchain networks, asset managers can reach new capital markets without disrupting existing processes or partnerships.

Calastone's global network, comprising over 4,500 firms across 56 markets, facilitates the tokenisation and distribution of any share class via public, hybrid, or private blockchains. The infrastructure translates and processes on-chain orders to ensure compatibility with traditional fund operations.

This innovation allows asset managers to access blockchain-native investor channels without operational disruptions, reduce distribution costs through automation and smart contracts, and maintain current service provider relationships.

According to a recent Calastone study, tokenisation could result in potential annual cost savings exceeding USD $1,351 billion for the asset management industry. It could also expedite fund launch processes and reduce seed capital needs.

Julien Hammerson, Chief Executive Officer of Calastone, commented, "The investment world is changing fast. 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."

Fundamentally, the Calastone Tokenised Distribution solution converts eligible fund shares into smart contract-powered tokens, directly incorporated into blockchain networks. These tokens integrate full fund details, operate with built-in security protocols, and feature automatic minting and burning capabilities, synchronised with real-time subscriptions and redemptions.