BNP Paribas Asset Management has issued a tokenized share class of a French-domiciled money market fund on the public Ethereum network. This pilot project marks the firm's second tokenization experiment, following an earlier trial on a private blockchain. The initiative aims to enhance operational efficiency and security in a regulated framework.
BNP Paribas Asset Management, the investment arm of the Paris-based bank, announced on Friday that it had used the Ethereum network to issue tokenized shares of a money market fund. The tokenized fund shares were issued on the public Ethereum network with permissioned tokens, ensuring that only eligible participants can hold and transfer them while benefiting from public blockchain infrastructure.
This is the second such money market tokenization trial by the firm. The first occurred in 2025 using a private blockchain in Luxembourg. The latest pilot, conducted through the bank's AssetFoundry platform, was a one-off, limited intra-group experiment to test end-to-end processes, including issuance, transfer agency, tokenization, and public blockchain connectivity, within a controlled and regulated framework.
"This second issuance of tokenised money market funds, this time using public blockchain infrastructure, supports our ongoing efforts to explore how tokenisation can contribute to greater operational efficiency and security within a regulated framework," said Edouard Legrand, BNP Paribas Asset Management’s chief digital and data officer.
The project reflects a broader trend among traditional finance institutions exploring tokenization on public blockchains like Ethereum. BlackRock's BUIDL tokenized Treasury product runs primarily on Ethereum and is the largest in the space. Franklin Templeton, WisdomTree, JPMorgan Chase & Co., and Fidelity Investments have also deployed tokenized money market funds on Ethereum. According to Token Terminal data, the market capitalization of real-world assets on Ethereum, excluding stablecoins, recently surpassed $15 billion, up roughly 200% year over year.
Proponents argue that tokenization could reduce costs, improve capital efficiency through near-instantaneous settlement, and provide more accountability in traditional finance. BNP Paribas, Europe's largest bank with over $3 trillion in assets, did not immediately respond to questions about the pilot.
