Global funds network Calastone has unveiled its latest offering, Calastone Tokenised Distribution, designed to facilitate the tokenisation of funds for asset managers on its network.
The service aims to provide a straightforward entry point into the realm of tokenisation, enabling funds to be distributed via blockchain without necessitating alterations to their existing structure, administration, or servicing.
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The new solution serves as a conduit between conventional investment funds and blockchain-centric networks, such as Ethereum, Polygon, and Canton.
These networks are increasingly drawing corporate treasurers seeking to manage on-chain cash balances, stablecoin issuers, institutional crypto firms, and retail and wealth investors familiar with crypto.
Calastone’s solution allows for the embedding of tokenised fund shares into blockchain networks, granting asset managers direct access to fresh capital sources without disrupting their current operations or relationships.
Utilising Calastone’s existing network, which connects over 4,500 firms across 56 markets, the service enables the tokenisation and distribution of any share class through various blockchain types.
Orders placed on-chain are seamlessly integrated and processed through Calastone’s system, ensuring compatibility with traditional fund operations.
Calastone CEO Julien Hammerson 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.”
The benefits for asset managers include the expansion into blockchain-native investor channels without operational upheaval, reduced distribution costs through automation and smart contracts.
Other benefits include the maintenance of existing service provider relationships, and positioning for a competitive edge in the evolving investment landscape.
Calastone Tokenised Distribution transforms eligible fund shares into tokens powered by smart contracts and integrated directly onto blockchain networks.
These tokens encapsulate the full details of the fund, incorporate robust security protocols, and are designed to automatically adjust in quantity in response to real-time subscription and redemption activity.
In 2023, Calastone expanded its APAC operations by opening a new office in Taipei, Taiwan, complementing its existing locations in Singapore and Hong Kong.
