Polygon today announced that Calastone, the global fund network, has integrated its tokenized distribution solution with the Ethereum Layer 2 scaling network.
The integration allows Calastone’s blockchain-based fund distribution platform to function on Polygon’s infrastructure, supporting institutional, on-chain fund operations.
Polygon and Calastone join forces
According to the official press release shared with CryptoPotatoCalastone’s Tokenized Distribution allows fund share classes to function directly on-chain and reduce settlement times and operational costs for asset managers, while maintaining existing administrative workflows.
Polygon’s network will facilitate large-scale institutional operations within Calastone’s network, which includes 4,500 financial institutions in 58 markets. Polygon’s infrastructure has previously been used in tokenization pilots with companies like BlackRock and several major real estate partners.
The integration represents one of the first large-scale implementations of blockchain technology within fund distribution infrastructure, facilitating cross-border access to funds 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 to institutional operations.
In a statement, Simon Keefe, Head of Digital Solutions at Calastone, said:
“Markets are demanding a more efficient, transparent infrastructure and blockchain is ready to deliver at scale. Through Polygon, our Tokenized Distribution platform can seamlessly connect to the onchain ecosystem, uniting our global network with the efficiencies of blockchain to streamline fund distribution. We expect rapid scale from pilots to production as more managers and investors move to onchain distribution. The connectivity between traditional funds and onchain liquidity opens up access to both existing and new investor bases worldwide.”
While Calastone’s Tokenized Distribution on Polygon is now live, the announcement stated that additional features and network integrations are planned in 2025.
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Calastone, which claims it processes more than $328 billion in monthly transactions, had previously highlighted growing global interest in tokenized funds, finding 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 trading firm announced its integration with Fireblocks’ blockchain infrastructure. The main purpose of this move was to provide asset managers with a tool that allows them to tokenize any fund on Calastone’s platform, while maintaining core functions such as issuance, administration and compliance workflows.
Fireblocks acts as the underlying infrastructure, allowing Calastone to deploy smart contracts across multiple blockchains, including Ethereum and Polygon.