In a bold move, BNP Paribas Asset Management has launched a tokenized share class for its French money market funds on public blockchain infrastructure. This step represents a significant advance in usage.
This project uses the permissioned access model on Ethereum. This means that only authorized participants can hold or transfer tokens. Stay within strict rules to keep things safe and legal.
What is this tokenization project?
BNP Paribas Asset Management has created a new share class in one of its existing money market funds based in France. These shares currently exist as tokens on the public Ethereum network. We used the bank’s own AssetFoundry platform to achieve this.
This is not the bank’s first attempt. Previously, they tokenized a Luxembourg money market fund on a private blockchain. Now,
This test was a small internal experiment between the BNP Paribas Group. This allows us to check the complete process from start to finish, including issuing shares, handling transfers, tokenizing, and linking to public blockchains.
Teamwork across BNP Paribas divisions
BNP Paribas has assembled a top team for this purpose.
- BNP Paribas Asset Management: Issue fund shares.
- BNP Paribas Securities Services: Processed the transfer and transaction, set up the wallet, and safely stored the private key.
- BNP Paribas CIB Asset Foundry: Provides tokenization tools and connects to Ethereum.
This teamwork highlights the bank’s strong structure. Seamlessly blend asset management, securities services, and technology platforms.
Why use it? Do you want to use authorized access?
Ethereum is open and widely used. But when it comes to funds, there are added controls. An authorized token means only eligible people can participate. This combines the power of a public chain with bank-level security.
The advantages are:
- Better tracking of stocks with clear blockchain records.
- Faster transfers without intermediary delays.
- Strong security with the Ethereum network.
- Test whether public chains are compatible with regulated finance.
For money market funds that help large investors manage their day-to-day cash, tokenization changes batch processing in real time. This means faster buying, selling, and settlement while keeping the rules intact.
Voices from BNP Paribas executives
“BNP Paribas Asset Management is committed to driving innovation that ultimately benefits our clients.With this second tokenized money market fund launch, this time
The infrastructure will support continued efforts to explore how tokenization can contribute to improved operational efficiency and security within a regulated framework. ” — Edouard Legrand, Chief Digital and Data Officer, BNP Paribas Asset Management
“BNP Paribas’ AssetFoundry platform provides key digital asset capabilities, from tokenization within a controlled setup to network connectivity and wallet-related functionality. This initiative will enable us to better understand the operational and governance implications of tokenization for money market funds.”
— Julien Clausse, Head of AssetFoundry (Digital Assets and Tokenization), BNP Paribas CIB
“BNP Paribas’ securities services business turns innovation into tangible value for customers. By acting as a transfer agent and leveraging the group’s tokenization infrastructure, we provide a streamlined and secure operating structure and support the financial processes enabled by BNP Paribas.”
Infrastructure within a regulated and permitted context. ” — Paul Daly, Head of Distribution Products Solutions, BNP Paribas Securities Services Business Unit
The big picture: Tokenization in finance
Tokenization turns real assets into digital tokens on a blockchain. In the field of finance, we promise faster, cheaper and clearer transactions. Banks such as BNP Paribas are leading because they handle large sums of money under strict rules.
Money market funds hold short-term debt obligations, such as Treasury bills. These are safe havens for your cash. tokenize them
Challenges still remain. Rules vary from country to country, security must be at the highest level, and users need easy tools. But such pilots build trust and know-how.
Other banks are also watching closely. Companies such as BlackRock and JPMorgan are also testing similar ideas. Tokenized funds, which blend traditional finance with the speed of blockchain, may become commonplace in the near future.
What is BNP Paribas?
BNP Paribas is Europe’s leading bank with 178,000 staff and a presence in 64 countries. Most work in Europe. It excels in three areas.
- commercial and personal banking;
- Investment and protection services.
- Corporate and Institutional Banking.
From Belgium to Asia Pacific, we serve everyone from individuals to large corporations. We also promote sustainability.
what’s next for Tokenization?
This pilot is a start. BNP Paribas may expand to more funds and partners. Ethereum grows through upgrades such as increased scalability, making it a better fit for finance.
Investors benefit from efficiency. Funds reduce costs. The industry is moving towards digital assets. Check out more news
Tokenization is on
Important points:
- BNP Paribas has tokenized its French money market fund on Ethereum.
- Permitted models remain regulated.
- Internal testing proves that the end-to-end process works.
- Achieve efficient fund management.
Learn more about blockchain in finance.
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