SS&C to add digital cash settlement for tokenised funds

SS&C plans to enable digital cash settlement for tokenised investment transactions, extending its work in digital investment markets.

The proposed settlement model would use regulated forms of digital cash, including stablecoins and tokenised commercial bank deposits. It follows SS&C's earlier rollout of live tokenised fund issuance and distribution services following its acquisition of Calastone.

Asset managers already use SS&C's systems to bring tokenised versions of traditional investment funds to market through existing infrastructure and connectivity. The latest step is intended to add a settlement layer to those transactions, as demand in digital assets shifts from simple tokenisation to the broader plumbing needed to complete trades.

The model is designed to support future atomic settlement, in which asset transfers and payments occur simultaneously. In practice, that would allow tokenised investment transactions to settle using digital cash rather than relying solely on conventional payment rails.

Next phase

The announcement marks a further push by SS&C to link traditional fund administration and distribution systems with digital asset structures. By supporting digital cash settlement, the company aims to create a route for eligible funds to be transacted and settled across the combined SS&C and Calastone network in digital cash.

That would widen the practical use of tokenised funds, which have drawn growing interest from asset managers exploring ways to issue, distribute and eventually settle investment products on digital infrastructure. The market has increasingly focused on whether tokenised products can move beyond issuance into end-to-end transaction workflows.

Nick Wright, General Manager of SS&C Global Investor & Distribution Solutions, outlined the company's view of that shift.

"Tokenised funds are becoming another mainstream investment structure alongside mutual funds and ETFs. As asset managers begin supporting these products in production, they need infrastructure that evolves with them," Wright said.

His comments reflect a broader shift in how fund market service providers approach tokenisation. Early work has often focused on proving that fund units can be represented digitally, but the next stage depends on how subscriptions, transfers and settlements are handled within regulated market structures.

Stablecoins and tokenised bank deposits have emerged as two of the main options for that settlement layer. Both aim to offer a digital representation of money that can move on programmable infrastructure, though regulators and market participants treat them differently across jurisdictions.

SS&C said the planned enhancements are intended to reduce settlement risk, improve operational efficiency and simplify cross-border investment transactions. It did not provide implementation dates, stating that more details on availability would be shared as development milestones are reached.

Calastone link

The initiative also underlines Calastone's role in SS&C's wider digital strategy. Since acquiring the funds network operator, SS&C has been building services that connect established fund distribution channels with tokenised investment structures.

Calastone has long been used by asset managers and distributors to automate fund transaction processes, giving SS&C an existing network from which to develop digital fund services. Bringing settlement into that environment could be a significant step if clients want to manage tokenised funds through familiar operating models rather than separate standalone systems.

Wright said the latest development builds directly on that earlier work.

"Today's announcement represents another step in helping clients make that transition, building on our live tokenised fund issuance and distribution capabilities with the digital cash settlement infrastructure needed to support the next stage of market adoption. Following the acquisition of Calastone, we have continued to invest in expanding these capabilities, helping clients adopt digital investments with confidence while leveraging the scale, resilience and connectivity they already rely on," he said.

Across financial markets, tokenisation projects have moved from pilot programmes towards limited live use in funds, bonds and cash instruments. For many institutions, the remaining challenge is whether core market functions such as settlement, custody and reconciliation can be adapted without disrupting existing controls, regulations, and operational processes.

SS&C's plan places it among the service groups trying to bridge that gap by combining conventional fund infrastructure with digital transaction methods. Whether asset managers adopt such models at scale will depend not only on technical readiness, but also on how regulated digital cash develops in the markets where those funds are sold and settled.

For now, SS&C has set out a direction that links tokenised fund issuance, distribution and settlement in a single operating framework.