In a significant move for the financial technology sector, Calastone has announced its collaboration with Polygon to enhance the distribution process of tokenized fund share classes. This partnership enables asset managers to utilize Polygon”s blockchain infrastructure to distribute fund shares on-chain, marking a notable advancement in fund management efficiency.
Starting Wednesday, asset managers can leverage Calastone”s Tokenized Distribution platform, now integrated with Polygon”s technology. This integration aims to streamline the distribution of fund shares, reducing both settlement times and operational costs while maintaining existing administrative workflows.
Simon Keefe, Head of Digital Solutions at Calastone, noted that the market is increasingly seeking more efficient and transparent infrastructure. He stated, “Markets are demanding more efficient, transparent infrastructure, and blockchain is ready to deliver at scale.” The seamless integration between Calastone”s platform and Polygon”s ecosystem underscores this shift towards blockchain adoption in traditional finance.
The concept of Tokenized Fund Share Classes represents a digital evolution of conventional mutual fund or ETF shares, backed by actual regulated fund units held in custody. This innovative offering allows fund managers to harness the advantages of blockchain technology while preserving the existing structure and operational processes of their funds.
Calastone”s expanded efforts in tokenization are part of its broader strategy to enhance its global funds network, which currently connects over 4,500 firms across 56 markets. The integration of Polygon”s blockchain now offers asset managers an option to distribute shares directly on-chain, further bolstering the company”s service offerings in the financial sector.
This partnership signifies a crucial milestone for both Calastone and Polygon as they aim to reach a wider pool of capital while improving the efficiency of fund distribution globally. As the adoption of blockchain technology continues to rise, Polygon is poised to play an essential role in the future landscape of tokenized asset management.
