BNP Paribas Dips Toes in Ethereum Pool: Tokenized Funds or Fancy Fad?

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What’s all this, then?

  • Old BNP Paribas, not content with the humdrum world of traditional finance, has gone and stuck its nose into the Ethereum business, creating a tokenized share class with its AssetFoundry platform. Rather them than me, what?
  • This little pilot scheme, mind you, is all about seeing how a tokenized fund fares in a “controlled setting”. Controlled, eh? Sounds like they’re treating it like a particularly volatile laboratory experiment, not a financial product.

So, the chaps at BNP Paribas Asset Management, a European outfit with a penchant for fancy titles, have decided to dabble in the world of blockchain. They’ve issued tokenized shares of a French money market fund on the Ethereum network, of all places. Quite the leap from the stuffy old boardrooms of Paris, what?

Apparently, this whole shebang involved creating a tokenized share class using their AssetFoundry platform. A limited internal experiment, they call it, to see if traditional fund processes can waltz along with public blockchain infrastructure. Rather like trying to teach a walrus to tango, if you ask me.

A Controlled Dip in the Blockchain Pool

These tokenized shares, mind you, weren’t just handed out willy-nilly. Oh no, only approved entities could get their mitts on them, and transfers were strictly for eligible investors, all in the name of regulatory compliance. Can’t have the hoi polloi mucking about with this sort of thing, can we?

According to the powers that be at BNP Paribas, this pilot allowed them to test the full lifecycle of a tokenized fund in a “controlled setting”. Issuance, record-keeping, transfer agency functions – the whole nine yards. Sounds like they’re treating it like a particularly delicate orchid, not a financial instrument.

BNP Paribas Asset Management played the role of issuer, while BNP Paribas Securities Services handled the transfer agent and dealer duties. Quite the family affair, what?

Testing the Waters, Not Diving In

Now, don’t go getting your hopes up for a commercial launch just yet. This was purely an operational test, a one-time internal exercise to see how traditional financial workflows fare when adapted to tokenized assets. Rather like testing a new brand of tea by dipping a single pinky finger into the cup, if you catch my drift.

By running this project on a public blockchain, the bank wanted to see how regulated financial products can tango with decentralized infrastructure while keeping those compliance controls firmly in place. A bit like trying to waltz with a bear while holding a tray of champagne glasses – tricky business, but potentially impressive if pulled off.

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2026-02-21 20:36