BNP Paribas Enters Tokenization Market with Ethereum Blockchain Fund

BNP Paribas, the largest bank in Europe, has made a significant move into the world of distributed ledger technology with the launch of a tokenized money market fund on the Ethereum blockchain.

The pilot project, executed through the bank's AssetFoundry platform, allows BNP Paribas to test the integration of public blockchains into heavily regulated fund structures. This approach reflects a growing consensus among institutional asset managers, who want to utilize the underlying settlement infrastructure of public networks like Ethereum while maintaining strict access controls.

BNP Paribas joins other major financial institutions, including BlackRock and JPMorgan Chase & Co., in exploring the use of tokenized funds on Ethereum. This marks another significant step in traditional finance's gradual migration to decentralized systems.