France’s Largest Bank Embraces Blockchain with Tokenized Fund Offering

In a bold step toward digital transformation, BNP Paribas Asset Management (BNPP AM)—the investment arm of France’s largest bank—has introduced a tokenized share class of a money market fund (MMF), signaling a new era of blockchain-powered finance.

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Embracing Distributed Ledger Technology (DLT)

The launch builds on BNPP AM’s recent experimentation with Distributed Ledger Technology (DLT) for cross-border transactions, pushing beyond traditional fund administration methods. In collaboration with Allfunds Blockchain, the firm has developed a platform to issue and manage natively tokenized shares of a Luxembourg-based MMF. Meanwhile, BNP Paribas Securities Services supports the initiative by acting as the fund’s transfer agent and handling fund dealing services.

This tokenized share class allows investors to place and settle orders instantly upon the publication of the fund’s Net Asset Value (NAV), eliminating delays caused by the batch processing methods typically used in conventional fund systems.

Building on CBDC and Blockchain Trials

The initiative also expands on insights gained during the 2024 Eurosystem wholesale Central Bank Digital Currency (CBDC) trials. BNPP AM aims to explore how security tokens can enhance asset management processes by improving transaction speed, transparency, and operational efficiency.

By utilizing DLT, BNPP AM significantly reduces friction in fund transactions—making them faster, more secure, and more transparent. This advancement may also open doors for wider investor participation, extending MMF accessibility beyond traditional institutional investors to retail clients as well.

Making Investing Faster and More Accessible

One of the standout benefits of tokenized funds is instant settlement—a critical step toward modernizing banking and financial services. By eliminating prolonged waiting times for transaction approvals, investors gain quicker access to their capital, enhancing liquidity and user experience.

This move is part of a broader industry shift toward integrating blockchain into traditional financial infrastructure, streamlining how assets are traded, settled, and managed.

Leaders Champion Tokenization as the Future

Key voices behind the initiative have underlined its long-term importance:

Thibault Malin, Deputy CIO of Money Market Funds at BNPP AM, emphasized that leveraging blockchain is vital to keeping pace with evolving client needs and the rapidly changing financial landscape.
Paul Daly, Head of Distribution Products & Solutions at BNP Paribas Securities Services, praised native tokenization for offering more than just digital representations of traditional shares—highlighting its potential for enhanced market access, real-time settlement, and stronger links between traditional and digital financial ecosystems.
Ruben Nieto, Managing Director at Allfunds Blockchain, echoed this sentiment, noting that native tokenization paves the way for end-to-end digitization of financial products, enabling faster, more efficient investment processing.

Looking Ahead

With this initiative, BNP Paribas is redefining how money market funds operate, merging the reliability of traditional finance with the speed and efficiency of blockchain technology. The project positions the bank at the forefront of financial innovation—offering clients a glimpse into the future of asset management.

As financial institutions worldwide explore tokenized securities and blockchain solutions, BNPP AM’s tokenized MMF represents a major leap toward a more accessible, transparent, and efficient financial ecosystem.

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