BNP Paribas Launches Ethereum Pilot for Tokenized Money Market Fund

BNP Paribas expands blockchain adoption with Ethereum pilot, issuing tokenized money market fund shares using permissioned access and compliant digital asset standards.

BNP Paribas has introduced a new blockchain pilot using Ethereum infrastructure. The bank issued tokenized market fund shares of a France-domiciled euro money market fund. Consequently, the initiative is indicative of an amplification of traditional finance and public blockchain network integration.

BNP Paribas Issues Tokenized Shares Through Ethereum Infrastructure

BNP Paribas confirmed the issuance for its AssetFoundryTM tokenization platform. The shares were deployed on Ethereum on a permissioned access structure. Therefore, participation is still restricted to authorized institutional investors based on respective regulatory frameworks.

Instead of normal ERC-20 tokens, the bank chose ERC-3643. This token standard does support identity verification and controlled asset transfers. As a result, holdings are limited to possible participants that comply with stiff compliance requirements.

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Julien Clausse with BNP Paribas Corporate and Institutional Banking described the motivation of the deployment choice. He said the bank is looking to benefit from Ethereum’s network effects. However, access to investors is still gated to maintain regulatory alignment and operational security.

Previously, BNP Paribas was interested in blockchain experiments with SWIFT and Allfunds. Those initiatives reviewed models of settlement onchain and fund distribution efficiencies. Meanwhile, the next step for Ethereum (the pilot) goes further in practical issuance in a live public blockchain environment.

The fund domiciled in France is the bank’s second tokenized money market strategy. Earlier, under a Luxembourg-based one getting launched in 2025 on a private blockchain. Consequently, the change reflects BNP Paribas’ changing multi-network tokenization roadmap.

Strategy Expands Across Public, Semi-Private, and Private Chains

Stefan Brinaru of BNP Paribas Asset Management explained the long-term vision of the initiative. He emphasized availability across private, semi-private, and public blockchain ecosystems. Therefore, Ethereum is used as one part of a more widespread infrastructure diversification approach.

Furthermore, BNP Paribas said that there are other networks that could be tested in future phases. Potential contenders include Solana and Canton Network. However, executives did not reveal specific timelines for deployment or operational commitments.

Tokenized money market funds are continuing to pick up steam throughout the global financial markets. For example, Spiko Finance recently crossed the billion-euro mark of assets under management. Thus, institutional demand for liquidity products built on blockchain technology seems to be of growing importance.

Industry sees tokenization as a mechanism that enhances transparency and the efficiency of settlement. Additionally, blockchain infrastructure may help minimize reconciliation delays. For this reason, banks are looking into permissioned frameworks that represent a balance between innovation and regulatory protection.

BNP Paribas reiterated that compliance controls were a factor in every decision made in the course of the pilot. Identity checks, eligibility rules, and transfer restrictions are still being strictly enforced.

Importantly, uninterrupted core operations during the pilot launch were confirmed by the bank. Institutional participants continue to access subscriptions from onboarding processes.

BNP Paribas continues to place integration of blockchain as a strategic infrastructure priority. In addition, management noted continued investments in the innovation of digital assets and resiliency. Thus, the Ethereum pilot is a step back, showing realistic progress toward wider tokenized finance deployment.