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Blockchain Connects Conventional and Digital Finance with Calastone’s Integration of Polygon

Blockchain Connects Conventional and Digital Finance with Calastone’s Integration of Polygon

Bitget-RWA2025/11/13 06:34
By:Bitget-RWA

- Calastone partners with Polygon to tokenize fund distribution for 4,500 institutions across 58 markets, advancing blockchain adoption in institutional finance. - Polygon's proof-of-stake infrastructure enables sub-cent fees and instant settlements, bridging traditional markets with onchain efficiency while maintaining compliance. - Franklin Templeton expands its Benji platform to Canton Network, a private blockchain for institutional tokenized assets, highlighting hybrid solutions balancing privacy and t

Calastone, recognized as the largest global network for fund distribution, has joined forces with Polygon to introduce tokenized fund distribution to 4,500 institutions spanning 58 countries. This collaboration marks a pivotal move toward integrating blockchain technology into institutional finance. By utilizing Polygon’s proof-of-stake blockchain, the partnership delivers extremely low transaction costs and rapid settlement times, simplifying the process of global fund transactions, according to a

. Handling over £250 billion in monthly transaction volume, Calastone’s initiative seeks to connect conventional capital markets with the speed and efficiency of blockchain, allowing asset managers to engage digital-native investors while upholding regulatory and operational standards, as highlighted in a .

This partnership enables asset managers to issue Tokenized Fund Share Classes—blockchain-based versions of traditional mutual funds or ETFs—directly on Polygon. Simon Keefe, Calastone’s Head of Digital Solutions, stated that "blockchain is now capable of operating at scale," facilitating seamless integration between Calastone’s infrastructure and Polygon’s network, as detailed in the Blockonomi article. The solution minimizes settlement delays and operational expenses without interfering with current administrative workflows, addressing major challenges in institutional fund operations. Polygon’s recent upgrades, Rio and Heimdall, which support up to 5,000 transactions per second and immediate settlement, further strengthen its position as a foundation for real-world asset tokenization, as mentioned in the Crypto News report.

The alliance signifies more than just operational improvements; it reflects a growing institutional embrace of blockchain. Franklin Templeton, another industry leader, has recently expanded its Benji Technology Platform to the Canton Network, a private blockchain designed for institutional clients. This allows banks and trading firms to manage and exchange tokenized assets with greater privacy—an essential feature for organizations cautious about public blockchain visibility, according to a

. Canton’s Global Collateral Network now manages $396 billion in tokenized real-world assets, such as stablecoins and securities, highlighting the increasing demand for hybrid blockchain models that combine openness with confidentiality, as reported in a .

Calastone’s adoption of Polygon also underscores the competition among blockchains seeking institutional adoption. While

continues to lead in DeFi innovation, platforms like have seen significant growth in protocol revenue, generating $35.4 million in a month—almost four times Ethereum’s $9.1 million—primarily from stablecoin transactions, as noted in a . This trend highlights the critical role of transaction speed and cost-effectiveness in drawing institutional capital, especially as tokenized assets become more regulated.

Experts in the field see these advancements as drivers of a larger transformation. "Institutions are focusing on privacy and interoperability," commented Roger Bayston, head of digital assets at Franklin Templeton. "Regulated tokenized offerings can fuel the next era of financial services," as referenced in the Coinotag article. As blockchain technology continues to evolve, the merging of traditional and digital asset markets seems inevitable, with leaders like Calastone and Franklin Templeton at the forefront.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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