BNP Paribas Launches Tokenized Money Market Fund on Ethereum

BNP Paribas, the largest bank in Europe, has made a significant move towards blockchain adoption by launching a tokenized money market fund on the public Ethereum blockchain.

The firm utilized a permissioned access model to satisfy strict regulatory requirements and test integration of public blockchains into heavily regulated fund structures. This marks another significant step in traditional finance's gradual migration to distributed ledger technology.

BNP Paribas joins peers like BlackRock, JPMorgan Chase & Co., and Fidelity Investments, all of which have deployed tokenized money market funds on Ethereum. The total market capitalization of real-world assets on the Ethereum ecosystem has recently surpassed $15 billion, up roughly 200% year over year.

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. However, the bank is maintaining strict control over the digital assets.