TL;DR
- Calastone has integrated its Tokenized Distribution platform with Polygon’s Layer 2 network, enabling on-chain fund share operations with reduced settlement times and costs.
- The partnership supports institutional-grade fund distribution across Calastone’s network of over 4,500 institutions in 58 markets.
- The integration marks a strategic step toward large-scale tokenization in the asset management industry, enhancing transparency, efficiency, and interoperability.
Calastone, a global funds transaction network, has launched its tokenized fund distribution system on Polygon, leveraging the Layer 2 blockchain to digitize traditional fund structures. The integration enables fund share classes to operate directly on-chain while maintaining compatibility with existing administrative systems.
Polygon and Calastone Expand Institutional Tokenization
The move underscores the growing adoption of blockchain in traditional finance, as fund managers seek faster settlement cycles and transparent infrastructure. Calastone processes over $328 billion in transactions each month and now looks to scale its tokenization model beyond pilot programs into full-scale deployment.
Polygon’s scalable infrastructure provides the backbone for high-volume institutional operations, offering low transaction fees and secure settlement mechanisms. The collaboration enables fund managers to connect traditional fund operations with decentralized ecosystems, creating new access points for investors and liquidity providers. Additionally, Polygon’s active developer community and expanding list of enterprise collaborations further reinforce its position as a preferred Layer 2 solution for financial institutions exploring tokenization.
Strengthening On-Chain Fund Operations
Through Polygon’s Layer 2 framework, Calastone’s Tokenized Distribution allows fund issuers to automate processes such as issuance, settlement, and compliance. The blockchain integration also reduces reliance on intermediaries, enabling more direct fund distribution and streamlined operations across markets.
Simon Keefe, Calastone’s Head of Digital Solutions, emphasized that the partnership bridges traditional finance with blockchain efficiencies. He noted that blockchain’s maturity now supports real-world institutional demands, positioning tokenized funds as a natural evolution for global asset management.
Polygon’s technology has already been adopted in multiple tokenization initiatives, including collaborations with BlackRock and real estate investment firms, highlighting its expanding role in enterprise blockchain infrastructure.
Outlook For Tokenized Funds
Calastone plans to introduce additional features and integrations throughout 2026, expanding interoperability across blockchain networks. With rising regulatory clarity and institutional demand for digital assets, fund tokenization is increasingly viewed as a practical path toward greater market efficiency.
The partnership between Polygon and Calastone signals a continued convergence between blockchain innovation and traditional financial systems, positioning both firms at the forefront of the on-chain fund revolution. As global adoption accelerates, tokenized funds could redefine capital markets by combining liquidity, transparency, and accessibility in a unified digital framework.
