Calastone, the world’s largest global funds distribution network, is transitioning its operations onto the blockchain by integrating with Polygon, a leading proof-of-stake platform. This strategic move brings tokenized fund distribution to over 4,500 financial institutions across 58 countries, ushering in a new era of efficiency, transparency, and programmability for the asset management industry.
Handling more than £250 billion in monthly fund transactions, Calastone aims to revolutionize the way financial institutions interact with investment products by leveraging Polygon’s high-performance blockchain infrastructure. The integration introduces tokenized fund share classes, providing asset managers with access to a global pool of digital-native investors. By doing so, Calastone enables a seamless bridge between the traditional finance world and blockchain-based asset management.
This onchain transformation allows institutions to benefit from faster settlements, reduced transaction costs, and enhanced automation in fund distribution and reconciliation processes. Polygon’s robust infrastructure, recently bolstered by its Rio and Heimdall upgrades, supports transaction speeds of up to 5,000 per second with near-instant finality—critical features for institutions aiming to deploy real-world assets and large-scale payment solutions onchain.
The collaboration not only enhances operational efficiency but also aligns fund management processes with emerging financial technologies. Tokenization of assets enables programmable logic to be embedded directly into fund transactions, allowing for real-time compliance, automated reporting, and cross-border interoperability. These capabilities are particularly valuable in jurisdictions with complex regulatory environments.
Polygon Labs, the development team behind the Polygon ecosystem, is also contributing to broader web3 innovation with projects like Agglayer, a unified network of interoperable chains. Their existing partnerships with major players such as Stripe, Manifold Trading, and NRW.BANK demonstrate Polygon’s commitment to expanding the reach and utility of its blockchain infrastructure in both retail and institutional finance.
For asset managers, the shift to blockchain-enabled fund distribution opens the doors to more agile product offerings, such as fractionalized investment vehicles and 24/7 trading cycles. Retail investors, in turn, can gain access to traditionally illiquid or institution-only funds through digital platforms, increasing market inclusivity and liquidity.
From a compliance perspective, integrating fund distribution onchain doesn’t require a radical departure from established oversight mechanisms. Instead, blockchain enhances auditability and regulatory reporting by recording immutable transaction histories. This aligns with global efforts to modernize financial infrastructure while maintaining robust governance.
The transformation also supports the financial industry’s broader digitalization goals. As more real-world assets become tokenized—from equities to fixed-income instruments—the need for secure, scalable, and interoperable distribution networks becomes increasingly urgent. Calastone’s move positions it at the forefront of this evolution, offering its clients a future-proof solution.
Moreover, the integration sets a precedent for other financial infrastructure providers to follow suit. By demonstrating that blockchain can coexist with traditional fund administration requirements, Calastone paves the way for wider institutional adoption of decentralized technologies.
In the long run, tokenized funds could become the default mechanism for asset distribution, reshaping everything from portfolio construction and fund rebalancing to fee structures and investor onboarding. The programmability of blockchain allows for innovations like automated dividend distribution and real-time net asset value (NAV) reporting, drastically improving user experience and operational transparency.
Another important implication of Calastone’s blockchain migration is the potential for DeFi (decentralized finance) and TradFi (traditional finance) convergence. With regulated entities now able to issue and distribute tokenized assets within an institutional framework, the lines between decentralized and centralized finance continue to blur.
As the digital asset ecosystem matures, having interoperable and scalable fund distribution platforms will be essential. Calastone’s decision to integrate with Polygon not only enhances its own services but also contributes to the broader adoption of blockchain in global capital markets. Ultimately, this marks a pivotal step in the modernization of financial infrastructure, making markets more accessible, efficient, and transparent for all participants.