Global funds network Calastone taps Polygon for tokenized asset distribution

Global funds network Calastone has again tapped Polygon as a tokenization tech provider.

Starting on Wednesday, asset managers can now distribute Calastone’s Tokenized Fund Share Classes on Polygon’s rails, according to a representative for the company. 

"Markets are demanding more efficient, transparent infrastructure, and blockchain is ready to deliver at scale," Calastone Head of Digital Solutions Simon Keefe said. "Through Polygon, our Tokenised Distribution platform can connect seamlessly with the onchain ecosystem, uniting our global network with blockchain’s efficiencies to streamline fund distribution.”

Tokenized Fund Share Classes are digital blockchain-based representations of traditional mutual fund or ETF shares, backed 1:1 by real, regulated fund units held in custody.

London-based Calastone is the largest global funds network, offering automated order routing, settlement, dividend, and transfer services to asset and fund managers.

The firm, founded in 2007, reportedly connects over 4,500 firms across 56 markets, according to its website.

Calastone’s Tokenised Distribution solution , which went live on Ethereum, Polygon, and Canton in April, enables fund managers to operate onchain, theoretically cutting settlement times and operational costs without sacrificing “existing administrative processes,” the team writes. 

The blockchain-based distribution platform allows funds to tap into onchain pools of capital, like tokenized Treasurys, without requiring changes to the fund's structure, administration, servicing, or existing operations, the company notes.

“What’s new now is that this isn’t theoretical anymore. Calastone has actually integrated the system with Polygon and their global network — the 4,500 institutions and the £250 billion in monthly flow — can now distribute fund share classes directly onchain using Polygon’s infrastructure,” a representative said.