As we look ahead to 2026, one theme stands out across every conversation I have with asset managers, platforms and asset servicers: growth will increasingly depend on how effectively we remove friction from fund distribution.
The next phase of our industry’s evolution will not be defined by product innovation alone, but by the infrastructure that connects products to investors – across geographies, asset classes and investment formats. At Calastone, we see three powerful forces converging: geographic expansion into faster-growing markets, a fundamental shift in how funds are distributed and settled, and a widening opportunity set driven by tokenisation and ETFs.
Together, these trends are reshaping what “good” looks like in fund servicing – and setting the agenda for the year ahead.
Expanding into new growth markets
While much of the industry remains focused on mature European markets, growth in 2026 will increasingly come from regions that are still building out their fund infrastructure.
Eastern Europe and the Middle East are two areas where we are seeing accelerating momentum, particularly in mutual funds. In both regions, local markets are modernising rapidly, regulators are supportive of cross-border distribution, and there is strong appetite from platforms to scale efficiently without replicating the legacy complexity seen elsewhere.
Brazil is another standout. The market is gaining real traction, with more firms coming onto the Calastone network and a clear pipeline of further growth. What’s encouraging is not just the volume, but the ambition: Brazilian institutions are actively looking to leapfrog legacy models and adopt more automated, scalable approaches to distribution from the outset.
This combination of regional expansion and infrastructure-first thinking will be a defining feature of 2026. Firms that can connect once and distribute everywhere will be far better placed than those still relying on bespoke, market-by-market solutions.
Tokenised distribution moves from experiment to execution
Tokenisation has moved beyond proof-of-concept. The question is no longer if it matters, but where it delivers value first.
Our research shows that distribution is the natural entry point. Tokenised funds allow asset managers to access entirely new pools of capital – including decentralised finance (DeFi) treasuries and digital-native investors – without re-engineering their underlying fund structures. As a result, tokenised fund AUM is forecast to grow to $235bn by 2029, a 58x increase from 2024
By 2026, we expect tokenised distribution to be firmly established as a mainstream channel rather than a specialist one. Money market funds and private assets are leading the way, driven by demand for on-chain liquidity, collateral efficiency and improved treasury management.
Regulation will continue to play a critical role here. Encouragingly, regulators globally are engaging constructively with tokenisation, focusing on interoperability, investor protection and legal clarity rather than resistance. That supportive tone will be essential in enabling institutional-scale adoption over the next two years.
Tokenisation also opens the door to more efficient collateral management. Tokenised money market funds, for example, have the potential to transform margining and settlement by enabling near real-time, 24/7 movement of high-quality collateral. That is a structural improvement and one that becomes increasingly compelling as markets push towards faster settlement cycles.
Fund settlement acceleration: T+1 is getting closer
The move to T+1 for securities trading in the EU, expected by 2027, is no longer a distant consideration – it is fast becoming a practical design constraint for systems and processes being built today. Shorter settlement cycles place far greater demands on operational resilience, data accuracy and real-time connectivity.
For firms still dependent on manual workflows or fragmented messaging chains, T+1 will be challenging. For those operating on modern, networked infrastructure, it becomes an opportunity to reduce risk, improve liquidity management and deliver a better client experience.
In that sense, settlement reform is acting as a catalyst, accelerating investment in automation and shared infrastructure across the industry.
ETFs: unlocking the secondary market opportunity
ETFs continue to be one of the fastest-growing segments in asset management, and that growth shows no sign of slowing. But as volumes rise, inefficiencies in both the primary and secondary markets are becoming more visible.
While much attention has been paid to primary market servicing, the secondary market – particularly in the UK – presents a major untapped opportunity.
Today, many UK investors face high per-transaction costs and limited access to fractional ETF investing. This discourages regular saving and puts ETFs at a disadvantage compared with mutual funds on many platforms.
Calastone’s network is now open for secondary market ETF trading, allowing platforms to treat ETFs much more like mutual funds operationally. Orders can be collected, aggregated and sent to brokers in bulk, then disaggregated on fulfilment. The result is a dramatic reduction in transaction costs and the removal of barriers such as fractionalisation.
This model mirrors the success of German ETF savings plans, which have driven a huge expansion in retail participation. Replicating that success in the UK could be transformational – enabling platforms to offer low-cost, regular ETF investing at scale and opening ETFs up to a far broader audience.
As ETF adoption continues to grow, efficiency in the primary market will also be critical. Faster settlement, higher volumes and more complex strategies all require infrastructure that can scale without introducing risk. In 2026, ETF growth and operational modernisation will go hand in hand.
Working hand in hand with SS&C
Finally, it would be impossible to look ahead without addressing the significance of our new ownership.
Our work with SS&C is about combining complementary strengths to unlock new opportunities for clients. Calastone’s network technology and connectivity, paired with SS&C’s global scale and servicing capabilities, creates a platform for deeper collaboration across the fund lifecycle.
Working hand in hand, we can accelerate innovation, expand geographic reach and deliver more effective solutions to asset managers, platforms and distributors. Importantly, this partnership allows us to think bigger – not just about individual processes, but about how the industry operates as a whole.
Looking ahead
By 2026, fund distribution will look markedly different from today. It will be more global, more automated and more inclusive. Tokenised distribution will sit alongside traditional channels. ETFs will be easier and cheaper to access. Settlement cycles will be faster. And infrastructure will increasingly be shared rather than siloed.
The firms that succeed will be those that invest early in connectivity, scalability and collaboration – and that recognise distribution as a strategic differentiator, not just a cost centre.
At Calastone, our focus remains the same: removing friction, expanding access and helping the industry grow in a way that is sustainable, efficient and investor-focused. The opportunity ahead is significant – and we’re only just getting started.
