Franklin Templeton and BNP Paribas tout tokenization as boost for EU

Franklin Templeton and BNP Paribas joined a panel at the WAIB Summit 2026 in Monaco to argue that tokenized assets can enhance capital efficiency and liquidity in the EU financial system [1]. Their comments came amid a wave of regulatory approvals and industry pilots aimed at bringing blockchain‑based trading to mainstream markets [1].

Key takeaways

• Tokenized securities enable 24/7 trading and instant settlement, reducing capital lock‑up [1].
• The U.S. SEC approved Nasdaq’s pilot for tokenized high‑volume stocks on March 18, 2026 [1].
• NYSE partnered with Securitize on March 24, 2026 to build blockchain infrastructure for tokenized shares and ETFs [1].
• Digital Asset Holdings raised $355 million to expand its Canton Network, already piloted by institutions including BNP Paribas [1].

Panel insights and regulatory backdrop

During the Monaco panel, executives from Franklin Templeton and BNP Paribas emphasized that tokenization could streamline the settlement process for European assets, freeing up capital that is traditionally tied up in multi‑day clearing cycles [1]. They pointed to recent U.S. regulatory moves as a catalyst for broader adoption: the Securities and Exchange Commission gave the green light to Nasdaq’s proposal for tokenized stock trading on March 18, 2026, and the New York Stock Exchange announced a partnership with tokenization platform Securitize just six days later [1]. Both initiatives aim to create a venue where securities can be traded around the clock, settled instantly, and funded with stablecoins, thereby improving liquidity and reducing operational risk [1].

Industry pilots and funding momentum

Beyond the regulatory front, the tokenization push is being reinforced by private investment and pilot projects. Digital Asset Holdings secured a $355 million financing round, valuing the company at roughly $2 billion, to scale its Canton Network—a platform that lets financial institutions issue and settle tokenized securities while preserving data privacy [1]. The network has already been tested by major players such as Goldman Sachs, BNY Mellon, BNP Paribas, Standard Chartered, Société Générale and Deutsche Börse [1]. These pilots demonstrate that large banks are willing to explore blockchain solutions that could eventually be applied to European markets, aligning with the optimism expressed by Franklin Templeton and BNP Paribas.

Why it matters

The convergence of regulatory approval, corporate investment, and bank‑level pilots suggests that tokenized assets could soon become a mainstream tool for improving capital efficiency in the EU. Faster settlement and continuous trading promise to free up capital that is otherwise immobilized in traditional clearing processes, potentially lowering funding costs for issuers and investors alike. As more institutions adopt platforms like Canton and as regulators continue to endorse tokenized trading, the EU financial ecosystem may see a gradual shift toward on‑chain settlement, mirroring developments already underway in the United States.