BNP Paribas Tokenizes Money Market Fund on Ethereum

BNP Paribas, one of Europe's largest banks, has made a significant step into the world of blockchain by launching a tokenized money market fund on the Ethereum public network.

The bank's AssetFoundry platform facilitated the pilot project, which aimed to test the integration of public blockchains into heavily regulated fund structures. The result is a tokenized share class of a French-domiciled money market fund that utilizes a permissioned access model to control access and transfers.

This move follows previous efforts by BNP Paribas to explore blockchain technology, including a pilot project utilizing a private blockchain in Luxembourg. The bank's decision to switch to public networks reflects a growing consensus among institutional asset managers to leverage the underlying settlement infrastructure of Ethereum while maintaining strict access controls.