Calastone has unveiled a solution that allows asset managers to tokenize any fund operating on its network and distribute it across blockchain-based channels.

The offering delivers a simple, frictionless route to tokenization, without requiring asset managers to change how their funds are structured, administered, or serviced. Yet, with one step, they can unlock access to a growing universe of investors who operate exclusively within blockchain ecosystems, the company says.

Called Calastone Tokenized Distribution, the service bridges the gap between traditional investment funds and blockchain-native networks such as Ethereum, Polygon, and Canton, where investment activity is increasingly executed and settled using digital assets.

These networks are attracting a fast-growing class of investors that traditional distribution channels do not reach, including:

• Corporate treasurers managing substantial on-chain cash balances for yield and efficiency;
• Stablecoin issuers and institutional crypto firms seeking regulated investment options without the need to convert into fiat currencies; and
• Crypto-experienced retail and wealth investors who want access to traditional assets via the same wallets and digital infrastructure they use for digital assets.

“We make it possible to distribute existing funds via blockchain networks, instantly and at scale, without any operational upheaval or technical reinvention,” says Calastone chief technology officer Adam Belding.

Direct access

By embedding tokenized fund shares into these blockchain networks, asset managers gain direct access to new pools of capital, without disrupting existing processes or partnerships.

The solution leverages Calastone’s global network – spanning over 4,500 firms across 56 markets – to enable any share class on the network to be tokenized and distributed via public, hybrid, or private blockchains.

Orders initiated on-chain are automatically translated and processed through Calastone’s infrastructure, ensuring full compatibility with traditional fund operations.

This enables asset managers to expand into blockchain-native investor channels with no operational disruption, reduce distribution costs via automation and smart contracts, maintain existing service provider relationships, and position themselves for long-term advantage in an evolving investment landscape, the company says.

Cost savings

The launch follows a recent Calastone study showing that tokenization could unlock over US$135 billion in annual cost savings for the asset management industry, while accelerating fund launches and lowering seed capital requirements.

“The investment world is changing fast,” says Calastone chief executive officer Julien Hammerson. “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.”

The solution converts eligible fund shares into smart contract-powered tokens embedded directly onto blockchain networks. These tokens reflect the fund’s full detail, operate with built-in security protocols, and automatically mint and burn in line with real-time subscriptions and redemptions.