BNP Paribas Joins BlackRock and JPMorgan in the Rush to Tokenize Funds on Ethereum

BNP Paribas, Europe's largest bank, has tokenized a share class of a French-domiciled money market fund on the public Ethereum blockchain via its AssetFoundry platform. This pilot experiment, conducted as a limited intra-group test, allowed the bank to evaluate end-to-end processes within a regulated framework. The tokenized shares employ a permissioned access model, restricting transfers and holdings to authorized participants who meet compliance standards, reflecting institutional preference for public network infrastructure combined with strict access controls. This move follows previous private blockchain tests by BNP Paribas and aligns it with other major players like BlackRock and JPMorgan in tokenizing funds on Ethereum. Money market funds are a key testing ground for tokenization, offering regulated, yield-bearing alternatives to stablecoins with the benefit of near-instantaneous settlement, improving capital efficiency over traditional batch systems. The total market capitalization of real-world assets tokenized on Ethereum recently exceeded $15 billion.

(Source：BeInCrypto)