In March, we hosted our Connect Forum Briefing in London, bringing together clients and industry leaders for an in-depth discussion on the transformative potential of tokenisation. Held as part of our global engagement with the asset management community, the event focused on how tokenisation is reshaping the economics of investment, revolutionising fund distribution, and enabling a more efficient and accessible future for asset management.
Over the course of the morning, we explored the commercial case for tokenisation, demonstrated our live infrastructure, and welcomed senior voices for a candid conversation about what’s needed to take this opportunity from concept to reality.
Tokenisation Economics: The Business Case is Real
Andrew Tomlinson, Calastone’s Chief Marketing Officer, opened the morning with findings from our recent study into the traditional cost structures of asset management and the transformative potential of tokenisation.
He highlighted that fund processing costs currently average 0.74% of AUM and are set to rise by 32% over the next three years. By contrast, firms adopting tokenised models could reduce costs by up to 23%, generating an estimated $135 billion in potential savings across the industry. But Andrew emphasised that the upside is not just about cost.
“Tokenisation isn’t just about operational efficiency,” he noted. “It’s about speed to market, product innovation, access to global distribution channels, and unlocking new investor segments.”
The session made clear that tokenisation offers both a defensive and offensive strategy for asset managers: streamlining cost bases while creating revenue opportunities through leaner, digital-native models.
Calastone Tokenisation: Revolutionising Fund Distribution
Simon Keefe, our Head of Digital Solutions, followed with a live demonstration of our recently launched Tokenised Distribution platform.
Simon began by framing the core issue: today’s fund distribution ecosystem remains heavily intermediated, fragmented, and batch-based. This infrastructure not only slows time-to-market, but also imposes substantial costs and limitations on innovation. The Tokenised Distribution platform was built to change that.
The platform enables a traditional mutual fund to be tokenised, permissioned, and issued to a blockchain environment – public or private – via smart contracts, all without requiring a wholesale replatforming by asset managers or transfer agents. It integrates seamlessly into existing fund structures and operational models.
“This isn’t theoretical—it’s live,” said Simon. “We’ve proven that you can embed tokenised funds directly into the digital economy, giving asset managers new channels for growth without dismantling their current architecture.”
The demo also highlighted the power of our network, which connects over 4,500 participants globally. That infrastructure now supports tokenised investment, offering a ready-made distribution and servicing ecosystem.
Fireside Chat: The Path to Tokenised Investment
The panel discussion brought together Adam Belding, our CTO, and John Allan, Head of Innovation at the Investment Association (IA), for a candid fireside chat moderated by Edward Glyn.
Adam shared Calastone’s journey in tokenisation, from early blockchain experimentation to Calastone’s current dual focus on operational efficiency and integration with decentralised finance (DeFi) ecosystems. He noted that while much of the early innovation was internally driven, the pull is now coming from the market, particularly treasurers and digital-native players looking for yield, transparency, and flexibility.
“We’re seeing a strong demand for tokenised money market funds and collateral solutions,” said Adam. “These are simple, high-value use cases with clear economic benefit and they’re the first wave of real-world traction.”
John added perspective from the IA, describing how tokenisation has evolved from a conceptual discussion into a central regulatory and industry focus. He credited the UK’s regulators, including the FCA, for engaging proactively with industry participants and signalling strong support for innovation.
“The ambition is for the UK to become the global hub for digital investment,” John said. “Tokenisation is a key lever in delivering that vision, offering lower costs, better access, and a more personalised investor experience.”
The panel also addressed barriers to adoption. John pointed to legacy infrastructure, internal data silos, and lingering concerns about conflating tokenisation with crypto risk as past blockers, but noted that much of this has shifted. “Regulators now operate open-door policies. Awareness has improved. The ecosystem is maturing.”
Adam reinforced the importance of building incrementally. “Trying to boil the ocean won’t work. But deploying tokenisation in targeted, high-value areas like money market funds or stablecoin-adjacent assets? That’s happening now.”
Looking Ahead
As the session drew to a close, both panellists agreed that momentum is real and accelerating. With digital sovereign bonds on the horizon, stablecoin frameworks emerging, and investor expectations changing, tokenisation is fast moving from the edges to the core of the asset management business.
Adam noted that in the near future, investors may well hold their tokenised fund units in digital wallets – next to their crypto, cash equivalents, and other assets – without any need for intermediaries. “The technology is already there,” he said. “It’s just a matter of market readiness.”
John concluded by reinforcing the strategic imperative: “The firms that engage with this now won’t just survive, they’ll lead. The opportunity is clear. The time to act is now.”
At Calastone, we’re proud to be leading the way – with the platform, a global network, and deep industry partnerships that are helping to bring tokenisation from pilot to production.
