SS&C Technologies has finalised its acquisition of Calastone for around $1.03 billion, securing control of the world's largest funds network built on distributed ledger technology. This move marks a significant stride as traditional finance infrastructure increasingly incorporates blockchain capabilities.

The deal, struck with private equity firm Carlyle, grants SS&C access to a platform that links 4,500 financial institutions across 58 countries and manages over £250 billion ($333.72 billion) in investment value each month. Calastone's network runs on blockchain technology, enabling real-time settlement and automated fund transaction processing. Bill Stone, SS&C’s chairman and CEO, highlighted that the acquisition would fortify SS&C's leadership in global fund operations and accelerate innovation, expand reach, and simplify industry processes.

Calastone's blockchain-based infrastructure, rebuilt in 2019, was a pioneering move among financial market infrastructures, facilitating real-time settlements, cutting reconciliation workload, and automating previously manual workflows. This infrastructure positions Calastone well to support the growing institutional interest in blockchain-based settlement systems and the tokenization of traditional securities. The platform's compatibility offers potential as an intermediary bridging traditional fund operations with emerging tokenized asset markets.

Notably, asset managers such as BlackRock, Franklin Templeton, and WisdomTree have introduced tokenized fund products, increasing the demand for infrastructure that integrates conventional financial systems with blockchain issuance and trading. Calastone's network, connected now under SS&C, could serve as middleware for these converging ecosystems.

SS&C funded the acquisition through a combination of debt and cash, expanding its Term Loan B facility by $1.05 billion, bearing interest at SOFR+200 and maturing in 2031. The company expects the acquisition to be accretive within twelve months. Calastone’s 250 employees will join SS&C’s Global Investor & Distribution Solutions division under General Manager Nick Wright, blending Calastone's blockchain funds network with SS&C's extensive fund administration, transfer agency, and automation services.

This acquisition reflects a broader trend in traditional finance towards integrating blockchain technology not just as a disruptive innovation but as an enhancer of operational efficiency. SS&C already possesses considerable capabilities in crypto and digital assets through prior acquisitions and product development, enabling it to serve clients across both traditional and crypto-native sectors effectively.

Calastone's global presence across London, Luxembourg, Hong Kong, Taipei, Singapore, New York, and Sydney offers SS&C an expanded geographical footprint in areas where tokenization and digital asset adoption are rapidly progressing. The network’s existing infrastructure facilitates the processing of mutual funds, exchange-traded funds, and alternative investments by handling order routing, settlement, and reporting with enhanced speed, reduced costs, and improved transparency.

As the asset tokenization trend accelerates beyond early-stage experiments into areas such as real estate, private credit, and traditional securities, SS&C's enhanced capabilities through Calastone provide a scalable platform for asset managers looking to combine traditional fund structures with tokenized elements. This integration offers clients the flexibility to explore digital asset integration without disrupting their established operational frameworks.

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Source: Noah Wire Services