BNP Paribas Launches Pilot Tokenized Money Market Fund on Ethereum
BNP Paribas Asset Management has initiated a pilot tokenized money market fund on the Ethereum blockchain, issuing digital fund shares as ERC-20 tokens. The initiative aims to shorten settlement times, enhance transparency through on-chain record-keeping, and reduce custody costs for institutional investors.
1. BNP Paribas Launches Pilot Tokenized Fund
BNP Paribas Asset Management has initiated a pilot for a tokenized money market fund on the Ethereum blockchain, issuing digital fund shares as ERC-20 tokens to institutional clients.
2. Operational Benefits and Features
The tokenized structure is designed to enable near-real-time settlement, provide immutable on-chain transparency for holdings and transactions, and lower custody and administrative expenses compared with traditional fund operations.
3. Competitive Landscape
This move positions BNP Paribas alongside BlackRock and JPMorgan in offering blockchain-based fund products, signaling growing adoption of tokenization technology among leading asset managers.