SS&C announced that it is working on supporting regulated digital cash for the settlement of tokenized funds. Last year SS&C spent just over $1 billion acquiring fund distribution platform Calastone, one of the earliest adopters of blockchain technology in the asset management sector. SS&C is considered the largest third party transfer agent for mutual funds, and more than $45 trillion in assets run on its technology.
The announcement implied the plans are early stage, given it didn’t mention any particular stablecoins or tokenized deposit networks. Digital cash could support atomic settlement or delivery versus payment, thereby reducing settlement risk, and also make cross border investment transactions simpler. Digitally advanced asset managers such as Franklin Templeton already accept USDC for subscriptions to tokenized funds. On the cross border front, this echoes yesterday’s news that Japanese securities firms Daiwa and SBI are planning to use stablecoins to settle transactions by Singapore residents investing in Japanese tokenized assets.
SS&C operates in numerous jurisdictions, with each jurisdiction at different levels of readiness for digital cash. For example, stablecoins are mature in the US with regulatory clarity owing to the GENIUS Act. Only internal bank tokenized deposit solutions from the likes of BNY, Citi and JP Morgan are currently live, but multibank solutions (TCH, Cari, Hazel) plan to launch soon. By contrast, in the UK where Calastone is based, the stablecoin framework has only just been finalized. Yet a tokenized deposit solution involving the major banks, GBTD, is aiming to launch in 2027.
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