The integration with Polygon enables fund managers to reduce settlement times and operational costs without changing administrative processes.
Calastone has once again turned to Polygon as its tokenization technology provider. This new collaboration will enable asset managers to distribute Calastone’s Tokenized Fund Share Classes using Polygon’s blockchain.
Calastone has integrated Polygon’s blockchain technology into its Tokenized Distribution platform. Starting Wednesday, asset managers can use Polygon’s infrastructure to distribute fund share classes on-chain.
Simon Keefe, Head of Digital Solutions at Calastone, emphasized that “Markets are demanding more efficient, transparent infrastructure, and blockchain is ready to deliver at scale.” He highlighted the seamless connection between Calastone’s Tokenized Distribution platform and Polygon’s ecosystem.
The integration allows fund managers to tap into the benefits of blockchain technology. Polygon’s platform offers streamlined fund distribution, cutting settlement times and reducing operational costs. This advancement does not disrupt the existing administrative processes of fund managers.
Tokenized Fund Share Classes Offer Blockchain Advantages
Tokenized Fund Share Classes are digital representations of traditional mutual funds or ETF shares. These digital shares are backed by real, regulated fund units held in custody. They allow fund managers to leverage blockchain technology while keeping the structure and operations of the fund intact.
This new offering is part of Calastone’s strategy to enhance its global funds network. Calastone connects over 4,500 firms across 56 markets, providing automated order routing, settlement, and dividend services. By integrating Polygon, Calastone expands its offering to include blockchain-based solutions for the financial industry.
The Tokenized Distribution platform first launched in April, supporting Ethereum, Polygon, and Canton. With Polygon’s inclusion, fund managers now have the option to distribute shares directly on-chain.
The partnership marks a major milestone for Calastone, Polygon, and their combined global networks. Calastone’s platform can now leverage Polygon’s blockchain to reach a vast pool of capital. This move is expected to enhance the efficiency of fund distribution on a global scale.
Calastone’s extensive global network, combined with Polygon’s blockchain infrastructure, aims to make fund distribution faster and more cost-effective. As blockchain adoption grows, Polygon’s role in this ecosystem continues to expand, positioning it as a key player in the future of tokenized asset management.
