BNP Paribas pilots public‑blockchain tokenisation of money‑market fund

BNP Paribas Asset Management has issued a tokenised share class of a French‑domiciled money‑market fund on the public Ethereum network, marking a second tokenisation experiment after a private‑blockchain pilot in Luxembourg [1].

Key takeaways

• The tokenised shares were created on Ethereum but restricted to eligible participants through a permissioned access model [1].
• BNP Paribas Asset Management acted as the fund issuer, while its Securities Services unit served as transfer agent and held the private key for the pilot [1].
• The experiment was a one‑off intra‑group test of end‑to‑end processes, from issuance to public‑blockchain connectivity, within a regulated framework [3].
• The initiative follows BNP Paribas’ broader digital‑asset strategy, which includes crypto‑linked ETNs for retail clients and participation in the Canton Network [2].
• BNP Paribas views public‑blockchain tokenisation as a way to explore operational efficiency and governance implications for money‑market funds [1].

Testing public‑blockchain infrastructure

The pilot used BNP Paribas’ AssetFoundry™ platform to tokenise the fund shares and connect them to Ethereum. Under a permissioned access model, only authorised participants could hold or transfer the tokens, aligning with regulatory requirements [3]. BNP Paribas Securities Services set up the wallet and retained the private key, while the CIB’s AssetFoundry team provided the tokenisation and connectivity layer [1]. The bank describes the project as a limited intra‑group experiment designed to assess how public blockchains can be integrated into regulated fund structures without compromising governance or investor protection [1].

Part of a broader digital‑asset push

The tokenisation effort complements other recent BNP Paribas initiatives. Earlier in 2024 the bank launched six crypto‑linked exchange‑traded notes (ETNs) for French retail investors, giving exposure to Bitcoin and Ether without direct crypto holdings [2]. BNP Paribas also joined the Canton Network, a blockchain focused on institutional finance and real‑world asset tokenisation, and backed Digital Asset’s funding round [2]. Together, these moves illustrate the bank’s strategy of exploring both private and public blockchain solutions for a range of financial products [2].

Why it matters

By experimenting with a public‑blockchain tokenised fund, BNP Paribas is gathering practical insights into the operational, legal, and governance challenges of bringing traditional money‑market assets onto open networks. If the permissioned‑access approach proves viable, it could enable more frequent and flexible processing of fund transactions while maintaining regulatory compliance. The pilot’s results will likely inform future decisions on whether to expand tokenised offerings beyond intra‑group tests, potentially influencing how other banks approach blockchain‑based fund distribution.