BNP\u202fParibas Asset Management has issued a tokenised share class of French\u2011domiciled money market fund, recorded on public blockchain infrastructure.
\nThe initiative relies on a permissioned access model on Ethereum, restricting holding and transfers to authorised participants within a regulated framework.
\nConducted as an intra\u2011group experiment, the project leverages the joint expertise of BNP\u202fParibas Asset Management, CIB AssetFoundryTM\u00a0and BNP\u00a0Paribas\u2019 Securities Services business to test new end\u2011to\u2011end fund processes.\u00a0<\/p>\n
BNP\u00a0Paribas Asset Management has issued a tokenised share class of an existing French-domiciled money market fund, marking a new step in its exploration of fund tokenisation using public blockchain infrastructure.<\/p>\n
The project involved the issuance of a tokenised share class of the BNP\u00a0Paribas Asset Management money market fund on the public Ethereum network via BNP\u00a0Paribas\u2019 AssetFoundryTM\u00a0platform. The tokenised shares are issued under a permissioned access model, whereby holdings and transfers are restricted to eligible and authorised participants, in line with applicable regulatory requirements.<\/p>\n
This initiative follows BNP\u202fParibas Asset Management\u2019s earlier tokenised money market fund issuance in Luxembourg on a private blockchain. This second tokenised money market fund project was implemented using a different technological and operational setup through a public blockchain. Together, these initiatives reflect BNP\u00a0Paribas\u2019 approach to exploring multiple tokenisation and distribution models to better serve the fund managers and their investors.<\/p>\n
Leveraging BNP\u00a0Paribas\u2019 cutting edge capabilities across the Group\u2019s integrated model<\/p>\n
Within this project, BNP\u00a0Paribas Asset Management acted as the fund issuer. BNP\u00a0Paribas Securities Services business acted as transfer agent and fund dealing services provider, while BNP\u00a0Paribas CIB\u2019s AssetFoundryTM\u00a0platform provided the tokenisation and connectivity layer to the public blockchain network.<\/p>\n
Moreover, BNP\u00a0Paribas\u2019 Securities Services business operated the wallet setup and held the private key within the scope of this controlled intra\u2011group pilot.<\/p>\n
The initiative was conducted as a one\u2011off, limited intra\u2011group experiment, enabling BNP\u202fParibas to test new end\u2011to\u2011end processes, from issuance and transfer agency to tokenisation and public\u2011blockchain connectivity, within a controlled and regulated framework.<\/p>\n
Public blockchain with permissioned access<\/p>\n
The tokenised fund shares were issued on the public Ethereum network with permissioned tokens ensuring that only eligible participants can hold and transfer the tokens, while benefiting from the strength and broad adoption of public blockchain infrastructure.<\/p>\n
This approach allows BNP\u00a0Paribas and BNP\u00a0Paribas Asset Management to assess, how public blockchains can be integrated into regulated fund structures, while maintaining the highest standards of governance, investor protection, and operational robustness.<\/p>\n
Tokenisation is an innovative technology that is being explored across the financial industry for its potential to enhance how investment funds are issued and distributed over time. For money market funds in particular, which play a central role in liquidity management for corporate and institutional investors, tokenisation could be used as an alternative to traditional batch\u2011based fund processing, including more regular and flexible processing of fund related operations, while preserving the regulated nature of these funds.<\/p>\n
\u201cBNP\u00a0Paribas Asset Management is committed to driving innovation that will ultimately benefits our clients. 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.\u201d\u00a0Edouard Legrand, Chief Digital and Data Officer at BNP\u00a0Paribas Asset Management<\/p>\n
\u201cBNP\u00a0Paribas\u2019\u00a0AssetFoundryTM\u00a0platform delivers key digital-assets capabilities, from tokenisation to network connectivity and wallet-related functionalities within a controlled setup. This initiative allows us to better understand the operational and governance implications of tokenisation for money market funds.\u201d\u00a0Julien Clausse, Head of AssetFoundryTM\u00a0(Digital Assets & Tokenisation) at BNP\u00a0Paribas CIB<\/p>\n
\u201cBNP\u00a0Paribas\u2019 Securities Services business transforms innovation into tangible value for our clients. By acting as transfer agent and leveraging the Group\u2019s tokenisation infrastructure, we deliver a streamlined and secure operational setup that supports fund processes enabled by public blockchain infrastructure, within a regulated and permissioned context.\u201d\u00a0Paul Daly, Head of Distribution Product Solutions at BNP\u00a0Paribas\u2019 Securities Services business<\/p>\n
Source: BNP Paribas<\/p>\n","protected":false},"excerpt":{"rendered":"BNP\u202fParibas Asset Management has issued a tokenised share class of French\u2011domiciled money market fund, recorded on public blockchain…\n","protected":false},"author":2,"featured_media":28483,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12875],"tags":[108,5438,12883,14640,1863],"class_list":["post-28482","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bnp-paribas","tag-banks","tag-blockchain","tag-bnp-paribas","tag-buy-side","tag-tokenization"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts\/28482","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/comments?post=28482"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts\/28482\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/media\/28483"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/media?parent=28482"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/categories?post=28482"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/tags?post=28482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}