Calastone Integrates Tokenized Funds with Polygon Network

The integration between Calastone and Polygon marks a significant evolution in how traditional finance embraces blockchain technology. Calastone, which processes more than $328 billion in monthly transactions across 4,500 financial institutions in 58 markets, represents precisely the type of established financial infrastructure provider that blockchain networks need to achieve mainstream institutional adoption. By deploying its Tokenised Distribution platform on Polygon’s Layer 2 network, Calastone enables fund share classes to function directly on-chain while retaining existing administrative workflows.

This development builds on Polygon’s growing credibility within institutional finance, following previous tokenization pilots with firms including BlackRock (BLK) and several major real estate partners. The Ethereum scaling solution has positioned itself as a preferred infrastructure provider for enterprises seeking blockchain efficiencies without compromising on security or compliance. According to Simon Keefe, Head of Digital Solutions at Calastone, “Markets are demanding more efficient, transparent infrastructure, and blockchain is ready to deliver at scale.”

The core value proposition of Calastone’s Tokenised Distribution platform lies in its ability to streamline traditionally cumbersome fund distribution processes. By moving fund share classes directly on-chain, the platform significantly reduces settlement times and operational costs for asset managers. This efficiency gain comes without requiring wholesale changes to existing administrative workflows, making adoption more palatable for risk-averse financial institutions.

The integration with Polygon’s infrastructure facilitates high-volume institutional operations across Calastone’s global network. By reducing the need for multiple intermediaries, the platform simplifies access for asset managers while maintaining the compliance and security standards essential for institutional operations. This balance between innovation and regulatory compliance represents a crucial milestone in blockchain’s journey from experimental technology to production-grade financial infrastructure.

Calastone’s previous integration with Fireblocks’ blockchain infrastructure laid the groundwork for this Polygon deployment. Fireblocks acts as the underlying infrastructure that enables Calastone to deploy smart contracts across multiple blockchains, including Ethereum (ETH) and Polygon (MATIC). This multi-chain approach provides flexibility while ensuring institutional-grade security standards are maintained throughout the tokenization process.

The timing of this integration reflects growing global interest in tokenized funds, with Calastone previously noting particularly strong activity in the US and Asia compared to the UK and Europe. The platform’s ability to facilitate cross-border fund access and connect with digital-first investor pools positions it to capitalize on this expanding market demand. As Keefe noted, “The connectivity between traditional funds and onchain liquidity opens access to both existing and new investor bases globally.”

While Calastone’s Tokenised Distribution on Polygon is now live, the announcement indicated that additional features and network integrations are planned throughout 2025. This suggests a phased approach to deployment, allowing for gradual scaling from pilots to full production as more asset managers and investors transition to on-chain distribution methods. The platform’s architecture supports rapid scaling, with Keefe anticipating “rapid scaling from pilots to production as more managers and investors move to onchain distribution.”

This partnership represents more than just a technical integration—it signals a fundamental shift in how institutional finance views blockchain technology. No longer merely an experimental curiosity, blockchain infrastructure is now being deployed at scale within core financial operations. The combination of Calastone’s established market position and Polygon’s proven scaling solution creates a powerful foundation for the next phase of institutional blockchain adoption, potentially setting the standard for how traditional finance integrates with decentralized infrastructure.