BNP Paribas Tests Tokenized Money Market Fund on Ethereum

• BNP Paribas Asset Management issued tokenized fund shares on Ethereum.

• Access remains permissioned, with wallets and keys managed by BNP Paribas Securities Services.

• Pilot tests public blockchain fund operations within regulated governance controls.

BNP Paribas Asset Management has issued a tokenized share class of a French-domiciled money market fund on Ethereum. The issuance took place recently through an internal pilot led by BNP Paribas. The project explores how public blockchain infrastructure can support regulated fund operations using controlled access.

How the Tokenized Fund Was Structured

According to the announcement, BNP Paribas Asset Management acted as the fund issuer. Meanwhile, BNP Paribas Securities Services served as transfer agent and fund dealer. The tokenization and blockchain connectivity relied on BNP Paribas CIB’s AssetFoundryTM platform.

Notably, the tokenized shares were issued directly on the public Ethereum network. However, access remains restricted through a permissioned model. Only eligible and authorized participants can hold or transfer the tokens, in line with regulatory requirements.

Additionally, BNP Paribas Securities Services operated the wallet infrastructure and held private keys. This setup applied only within the limited intra-group pilot. The bank said the structure allowed end-to-end testing while maintaining governance controls.

Why Public Blockchain Was Used This Time

This initiative follows an earlier tokenized money market fund issued in Luxembourg on a private blockchain. However, this second project used a public blockchain with a different operational design. Both pilots reflect BNP Paribas’ approach to testing multiple tokenization models.

According to Edouard Legrand, Chief Digital and Data Officer at BNP Paribas Asset Management, the project builds operational knowledge. He said the issuance supports efforts to improve efficiency and security within regulated frameworks. Julien Clausse, Head of AssetFoundryTM at BNP Paribas CIB, added that the pilot helps assess governance implications.

Money Market Funds as Tokenization Test Beds

Money market funds play a central role in institutional liquidity management. Therefore, BNP Paribas used this structure to examine blockchain-based issuance and transfer processes. The bank stated the experiment remains a one-off internal test.

According to Paul Daly, Head of Distribution Product Solutions at BNP Paribas Securities Services, the setup streamlines fund operations. The pilot allows the group to evaluate public blockchain integration while preserving investor protections.