BNP Paribas Asset Management has issued a tokenized share class of a French-domiciled money market fund directly on the Ethereum public network. The issuance is part of an internal pilot exploring how public blockchain infrastructure can support regulated fund operations within a controlled access framework.
According to the announcement, BNP Paribas Asset Management acted as the fund issuer. BNP Paribas Securities Services served as the transfer agent and fund dealer. The tokenization process relied on the bank’s AssetFoundry™ platform, developed by BNP Paribas CIB.
Notably, while the tokens were minted on a public blockchain, holdings and transfers are restricted to eligible participants only. Wallets and private keys are managed by BNP Paribas Securities Services, ensuring compliance with regulatory requirements. This permissioned model applies solely within the intra-group pilot scope.
The bank had previously issued a tokenized money market fund in Luxembourg on a private blockchain. The latest project differs by using a public network with a distinct operational design. Together, both pilots reflect BNP Paribas' strategy of testing multiple tokenization approaches.
Edouard Legrand, Chief Digital and Data Officer at BNP Paribas Asset Management, said the initiative builds operational knowledge for improving efficiency and security within regulated frameworks. Julien Clausse, Head of AssetFoundry™ at BNP Paribas CIB, added that the pilot helps evaluate governance implications.
Money market funds serve as key instruments for institutional liquidity management. BNP Paribas chose this product type to examine blockchain-based issuance and transfer processes. The bank emphasized that the experiment remains a one-off internal test with no immediate commercialization plans.
Paul Daly, Head of Distribution Product Solutions at BNP Paribas Securities Services, noted that the setup streamlines fund operations while preserving investor safeguards, allowing the group to assess public blockchain integration.