BNP Paribas Issues Tokenized Money Fund on Ethereum

Odaily News BNP Paribas Asset Management has issued tokenized shares of a French-registered money market fund on a public blockchain. Announced on February 20th, this project marks a significant step in the bank's exploration of tokenization technology by transitioning from a private ledger to the Ethereum public network.

The project employs a permissioned access model on Ethereum, allowing only pre-approved regulated participants to hold or transfer the tokenized shares. This approach leverages the transparency and security of public blockchains while ensuring compliance with financial regulations. The experiment integrates multiple business lines of BNP Paribas: the Asset Management company acts as the fund issuer, the Securities Services division serves as the transfer agent and is responsible for wallet infrastructure and private key custody, while the Corporate and Investment Banking division's AssetFoundry platform handles the tokenization process and provides connectivity to Ethereum. This pilot builds upon previous experience with a tokenized money market fund issued using a private blockchain in Luxembourg, aiming to evaluate technology and operational models by testing different approaches. (Crowdfundinsider)