Key Highlights
- The project involves creating a tokenized share class using the bank’s AssetFoundry platform.
- The pilot allows BNP Paribas to test the full lifecycle of a tokenized fund within a controlled setting.
- The Ethereum-based test follows earlier tokenization work by BNP Paribas Asset Management.
BNP Paribas Asset Management, an investment company based in Europe, has conducted a pilot project to issue tokenized shares of a French money market fund on the Ethereum network. The effort aims to test how funds can operate using blockchain.
According to the official release, the project involved creating a tokenized share class with the bank’s AssetFoundry platform. The initiative was a limited internal experiment designed to evaluate how traditional fund processes could work with public blockchain infrastructure.
Controlled pilot on public blockchain
The tokenized shares were issued under a permissioned access model. Only approved entities could participate, and transfers were limited to eligible investors based on regulatory requirements.
According to the company, the pilot allowed it to test the full lifecycle of a tokenized fund in a controlled setting. This included issuance, record-keeping, transfer agency functions, and connectivity with blockchain infrastructure.
BNP Paribas Asset Management was the issuer of the fund shares, while BNP Paribas Securities Services managed transfer agent and dealer responsibilities.
Testing operational processes
The pilot focused on operational testing instead of a commercial launch. The bank called the initiative a one-time internal exercise meant to evaluate how current financial workflows work when adapted to tokenized assets.
By running the project on a public blockchain, the bank wanted to see how regulated financial products can work with decentralized infrastructure while maintaining compliance controls.
Tokenized assets expand on Ethereum
Meanwhile, the value of tokenized real-world assets on Ethereum’s mainnet exceeded $15 billion on February 17, reflecting growing institutional activity. Asset managers, including BlackRock and JPMorgan Chase, have issued blockchain-based financial products on the network in recent years.
Rising issuance has helped Ethereum retain a leading role in tokenized finance, as financial institutions continue to test and deploy regulated products using public blockchain infrastructure.
Part of broader tokenization effort
The Ethereum-based test comes after earlier tokenization work by BNP Paribas Asset Management. The firm previously issued a tokenized share class of a money market fund in cooperation with external blockchain providers.
BNP Paribas has also taken part in other institutional blockchain initiatives, including experiments involving new payment infrastructure and digital asset settlement systems.
Bigger picture
Tokenization of money market funds has drawn interest from large financial institutions seeking to streamline administrative processes and improve asset tracking.
BNP Paribas said the latest pilot supports its ongoing exploration of how tokenized financial products might operate within existing regulatory frameworks.
The test does not represent a public product launch but instead provides data on how blockchain-based fund structures could be integrated into conventional financial operations.
