Key Takeaways:
- Calastone integrates Polygon to enable tokenized fund share classes.
- On-chain operations reduce settlement times and operational costs.
- The integration enhances cross-border access and supports institutional compliance.
- Further feature expansions are planned throughout 2025.
Calastone Taps Polygon to Transform Fund Distribution
Calastone, the global funds network, has partnered with Polygon to launch tokenized fund share classes, marking a major step in blockchain adoption for institutional fund operations. The integration allows Calastone’s Tokenised Distribution platform to operate on Polygon’s Ethereum Layer 2 network, enhancing efficiency, transparency, and scalability for asset managers worldwide.
Blockchain Meets Institutional Fund Distribution
The collaboration enables on-chain fund operations that reduce settlement times and lower operational costs while retaining established administrative workflows. Simon Keefe, Head of Digital Solutions at Calastone, emphasized that the platform can now “connect seamlessly with the on-chain ecosystem, uniting our global network with blockchain’s efficiencies to streamline fund distribution.”
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Calastone’s network spans 4,500 financial institutions across 58 markets. Leveraging Polygon’s infrastructure, previously tested with firms like BlackRock, allows the firm to handle high-volume transactions securely and efficiently, opening cross-border fund access and digital-first investor pools.
Benefits for Asset Managers and Investors
The Polygon integration simplifies fund distribution by reducing intermediaries, maintaining compliance standards, and supporting institutional-grade operations. Asset managers can tokenize any fund while preserving issuance, administration, and compliance workflows, providing faster access to liquidity and global investor bases.
This move follows Calastone’s previous integration with Fireblocks, which enabled deployment of smart contracts across multiple blockchains, including Ethereum and Polygon. Combined, these innovations position Calastone as a leader in bridging traditional fund infrastructure with blockchain technology.
Scaling Up and Future Outlook
With tokenized fund share classes now live, Calastone anticipates rapid scaling from pilot programs to full-scale operations. Additional features and network integrations are planned for 2025, reflecting the growing global demand for digital-first, efficient, and secure fund distribution solutions.
By combining Polygon’s Layer 2 efficiency with Calastone’s global network, the initiative aims to redefine fund distribution, making it faster, more transparent, and accessible to both existing and new investor bases worldwide.
