- BNP Paribas tests Ethereum for tokenised money market shares
- French bank pilots permissioned fund issuance on Ethereum
- Institution explores public blockchain within regulated financial framework
Institutional adoption of public blockchain infrastructure gained fresh momentum after BNP Paribas Asset Management confirmed a new Ethereum pilot. The Paris based investment firm issued a tokenised share class of a French domiciled money market fund onchain. Unlike prior experiments, this initiative relied directly on Ethereum’s public network.
BNP Paribas executed the issuance through its AssetFoundryTM platform. However, access remained tightly controlled through a permissioned model built on Ethereum. Consequently, only eligible and authorised participants could hold or transfer the tokenised shares. This structure aligns with existing regulatory requirements governing fund distribution.
Moreover, the bank described the project as a limited intra group experiment conducted within a regulated framework. The initiative allowed teams to test end to end operational processes under controlled conditions. These processes covered issuance, transfer agency functions, tokenisation mechanics, and connectivity to public blockchain infrastructure.
BNP Paribas Asset Management acted as the fund issuer throughout the pilot. Additionally, BNP Paribas Securities Services served as transfer agent and dealer for the transaction. This internal coordination enabled the group to assess operational readiness across multiple business units.
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Controlled Blockchain Integration Within a Regulated Framework
Edouard Legrand, Chief Digital and Data Officer at BNP Paribas Asset Management, addressed the strategic intent behind the project. He stated that this second issuance of tokenised money market funds supports efforts to explore efficiency and security benefits. However, he emphasized that these benefits must operate within a regulated framework.
Significantly, the firm previously collaborated with Allfunds Blockchain to issue what it described as the first natively tokenised money market fund. That earlier project focused on private blockchain infrastructure. In contrast, the latest pilot connects regulated fund structures to a public blockchain network.
Besides its asset management initiatives, BNP Paribas continues to expand its role in institutional blockchain experiments. Reports indicate that the bank participates in an initiative exploring Swift connectivity with the Ethereum Layer 2 Linea network. Additionally, it reportedly joined discussions with major global banks to assess stablecoin issuance frameworks.
Consequently, this Ethereum pilot reflects a broader strategy rather than a standalone trial. The group continues to test how tokenisation integrates with existing financial infrastructure while maintaining compliance standards.
Conclusion
BNP Paribas Asset Management’s Ethereum based tokenised share class demonstrates a measured approach to public blockchain adoption. The pilot combines regulated fund structures with controlled onchain access, reinforcing the bank’s ongoing institutional blockchain strategy.
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