BNP Paribas Ushers in Era of Tokenization for Money Market Funds

In a bold move, BNP Paribas Asset Management has launched a tokenized share class for a French money market fund on public blockchain infrastructure. This step marks a key advancement in using like Ethereum for real-world finance.

The project uses a permissioned access model on Ethereum. This means only approved participants can hold or transfer the tokens. It stays within strict rules to keep things safe and legal.

What is This Tokenization Project All About?

BNP Paribas Asset Management created a new share class for one of its existing money market funds based in France. These shares now live as tokens on the public Ethereum network. They used the bank’s own AssetFoundry platform to make this happen.

This is not the bank’s first try. Earlier, they tokenized a money market fund in Luxembourg on a private blockchain. Now, with , they test a fresh setup. This shows BNP Paribas wants to try different ways to tokenize funds and help managers and investors.

The test was a small, internal experiment among BNP Paribas groups. It let them check full processes from start to finish: issuing shares, handling transfers, tokenizing, and linking to public blockchain.

Teamwork Across BNP Paribas Units

BNP Paribas pulled together its top teams for this:

• BNP Paribas Asset Management: Issued the fund shares.
• BNP Paribas Securities Services: Handled transfers and deals, set up wallets, and kept private keys safe.
• BNP Paribas CIB’s AssetFoundry: Provided tokenization tools and connected to Ethereum.

This teamwork highlights the bank’s strong setup. It blends asset management, securities services, and tech platforms seamlessly.

Why Use with Permissioned Access?

Ethereum is open and widely used. But for funds, they added controls. Permissioned tokens mean only eligible people can join. This mixes the power of public chains with bank-level safety.

Benefits include:

• Better tracking of shares with blockchain’s clear records.
• Faster transfers without middlemen delays.
• Strong security from Ethereum’s network.
• Tests if public chains fit regulated finance.

For money market funds, which help big investors manage cash daily, tokenization can change batch processing to real-time. This means quicker buys, sells, and settlements while keeping rules intact.

Voices from BNP Paribas Leaders

“BNP Paribas Asset Management is committed to driving innovation that will ultimately benefit our clients. This second issuance of tokenized money market funds, this time using infrastructure, supports our ongoing efforts to explore how tokenization can contribute to greater operational efficiency and security within a regulated framework.”

— Edouard Legrand, Chief Digital and Data Officer at BNP Paribas Asset Management

“BNP Paribas’ AssetFoundry platform delivers key digital-assets capabilities, from tokenization to network connectivity and wallet-related functionalities within a controlled setup. This initiative allows us to better understand the operational and governance implications of tokenization for money market funds.”

— Julien Clausse, Head of AssetFoundry (Digital Assets & Tokenization) at BNP Paribas CIB

“BNP Paribas’ Securities Services business transforms innovation into tangible value for our clients. By acting as transfer agent and leveraging the Group’s tokenization infrastructure, we deliver a streamlined and secure operational setup that supports fund processes enabled by infrastructure, within a regulated and permissioned context.”

— Paul Daly, Head of Distribution Product Solutions at BNP Paribas’ Securities Services business

Bigger Picture: Tokenization in Finance

Tokenization turns real assets into digital tokens on blockchain. In finance, it promises faster, cheaper, and clearer deals. Banks like BNP Paribas lead because they handle big money under tough rules.

Money market funds hold short-term debt like treasury bills. They are safe havens for cash. Tokenizing them on could unlock 24/7 trading, instant settlements, and global reach.

Challenges remain: rules vary by country, security must be top-notch, and users need easy tools. But pilots like this build trust and know-how.

Other banks watch closely. Firms like BlackRock and JPMorgan test similar ideas. Soon, tokenized funds might be common, blending traditional finance with blockchain speed.

Who is BNP Paribas?

BNP Paribas is a top European bank in 64 countries with 178,000 staff. Most work in Europe. It shines in three areas:

• Commercial and personal banking.
• Investment and protection services.
• Corporate and institutional banking.

From Belgium to Asia-Pacific, it serves everyone from people to big firms. It pushes sustainability too.

What’s Next for Tokenization?

This pilot is a start. BNP Paribas may expand to more funds or partners. As Ethereum grows with upgrades like better scaling, it fits finance better.

Investors gain from efficiency. Funds cut costs. The industry moves to digital assets. Watch for more news on .

Tokenization on is here. BNP Paribas shows how big players adapt blockchain safely.

Key Takeaways:

• BNP Paribas tokenized a French money market fund on Ethereum.
• Permissioned model keeps it regulated.
• Internal test proves end-to-end processes work.
• Leads way for efficient fund management.

Stay tuned for more on blockchain in finance.

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