Calastone Taps Polygon to Launch Tokenized Fund Share Classes
Polygon announced today that Calastone, the global funds network, has integrated its tokenised distribution solution with the Ethereum Layer 2 scaling network.
The integration enables Calastone’s blockchain-based fund distribution platform to operate on Polygon’s infrastructure, supporting institutional-grade, on-chain fund operations.
Polygon and Calastone Join Forces
According to the official press release shared with CryptoPotato, Calastone’s Tokenised Distribution allows fund share classes to function directly on-chain and reduce settlement times as well as operational costs for asset managers while retaining existing administrative workflows.
Polygon’s network will facilitate high-volume institutional operations across Calastone’s network, which spans 4,500 financial institutions in 58 markets. Polygon’s infrastructure has previously been used in tokenization pilots with firms including BlackRock and several major real estate partners.
The integration represents one of the first large-scale deployments of blockchain technology within fund distribution infrastructure, which facilitates cross-border fund access and digital-first investor pools. By reducing the need for multiple intermediaries, the integration aims to simplify access for asset managers while maintaining compliance and security standards essential for institutional operations.
In a statement, Simon Keefe, Head of Digital Solutions at Calastone, said,
“Markets are demanding more efficient, transparent infrastructure, and blockchain is ready to deliver at scale. 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. We expect rapid scaling from pilots to production as more managers and investors move to onchain distribution. The connectivity between traditional funds and onchain liquidity opens access to both existing and new investor bases globally.”
While Calastone’s Tokenised Distribution on Polygon is now live, the announcement stated that additional features and network integrations are planned throughout 2025.
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Calastone, which claims that it processes more than $328 billion in monthly transactions, had previously highlighted the growing global interest in tokenized funds and had found strong activity in the US and Asia compared to the UK and Europe.
Fireblocks-Calastone
The latest development with Polygon comes months after a London-based tradfi firm announced its integration with Fireblocks’ blockchain infrastructure. The main objective of the move was to provide asset managers with a tool to tokenize any fund on Calastone’s platform while maintaining core functions like issuance, administration, and compliance workflows.
Fireblocks acts as the underlying infrastructure, which lets Calastone deploy smart contracts to be deployed across multiple blockchains, including Ethereum and Polygon.