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London, U.K.-Calastone is migrating its fund processing operations to a blockchain-based system to reduce the costs of fund distribution, the global funds transaction network has announced.

Calastone, which serves more than 1,700 financial organizations across 40 markets, will shift to a blockchain-based system in May 2019, the company says in a news release.

The system could reduce the overall global cost of fund distribution by as much as US$4.2 billion, it says.

“Funds remain a vital investment vehicle, though remain hampered by continually rising costs and threat of competition, ultimately rendering the current system economically and operationally unsustainable, says Julien Hammerson, CEO of Calastone, in a statement.

Leveraging blockchain technology, would transform “the way in which funds are traded, enabling an investment management community that can meet the changing needs of investors,” adds Hammerson.