Calastone, the world’s largest global funds network, has launched a tokenisation initiative that promises to offer asset managers “a powerful new route to market”.
Calaston Tokenised Distribution allows asset managers to tokenise any fund operating on its network, and to distribute it seamlessly across blockchain channels.
“We make it possible to distribute existing funds via blockchain networks, instantly and at scale. without any operational upheaval or technical reinvention,” said Adam Belding, Chief Technology Officer at Calastone.
The service aims to offer a simple, frictionless route into tokenisation, enabling asset managers to unlock access to an increasing number of investors who operate exclusively within blockchain networks.
While many traditional distribution channels are unable to reach this fast-growing group of investors, this solution looks to bridge that gap – and simplify the process.
In a note to market, Calastone said its “frictionless new solution” would allow asset managers to gain direct access to new pools of capital without disrupting existing processes or partnerships by enabling tokenised fund shares into these blockchain networks.
By leveraging Calastone’s global network of 4,500 firms across 56 markets, any share class on the network can be tokenised and distributed via public, hybrid or private blockchains.
This tokenisation and distribution enables asset managers to expand into blockchain-native investor channel, helps them reduce distribution costs, and maintain existing service provide relationships as well as positioning them to deal with the long-term in an evolving investment landscape.
The system works by converting eligible fund shares into smart contract-powered tokens, embedded directly onto blockchain networks. They automatically mint and burn in line with real-time subscriptions and redemptions.
A recent study from Calastone highlighted that tokenisation could unlock over $135bn in annual savings for the asset management industry.
“The investment world is changing fast,” said Julien Hammerson, CEO of Calastone, “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.”
