BNP Paribas Launches Ethereum-Based Money Market Fund Tokenization Pilot

According to BNP Paribas Asset Management, a blockchain-based trial using a permissioned Ethereum model was conducted to tokenize shares of a France-registered money market fund under controlled regulatory conditions.

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Summary

BNP Paribas Asset Management has completed a one-time internal pilot to issue tokenized shares of a France-registered money market fund. The trial was executed via its AssetFoundry platform using a permissioned Ethereum blockchain model. Conducted under a controlled regulatory framework, the experiment tested the feasibility of tokenization within money market fund operations, focusing on security and compliance in digital asset issuance.

Terms & Concepts
  • Tokenization: The process of converting ownership rights in an asset into a digital token on a blockchain.
  • Money Market Fund: A type of mutual fund that invests in short-term debt securities and aims to offer high liquidity with low risk.
  • Ethereum: A blockchain platform supporting smart contracts and decentralized applications; permissioned variants restrict access to approved participants.