Paris – BNP Paribas Asset Management (BNPP AM) has unveiled a tokenized version of its Money Market Fund (MMF) shares, marking a pivotal advancement in the digitization of traditional finance. The launch, executed in collaboration with Allfunds Blockchain and BNP Paribas Securities Services, brings distributed ledger technology (DLT) into the heart of conventional asset management.
The project introduces a blockchain-based share class for an existing Luxembourg-domiciled MMF. The new framework has already supported cross-border transactions with a French counterpart, replacing cumbersome, batch-based processes with near-instantaneous settlements after the net asset value (NAV) is calculated.
Efficiency Through Blockchain
By shifting to an on-chain model, BNPP AM aims to streamline operations, slashing the time and complexity involved in fund subscriptions and redemptions. This initiative draws on insights from BNPP’s participation in the 2024 Eurosystem trials for wholesale Central Bank Digital Currencies (CBDCs), which evaluated how DLT could enhance financial infrastructure.
“Blockchain enables us to reimagine how transactions are executed in asset management,” the firm noted in a statement, highlighting the efficiency gains and the potential to eliminate several intermediary layers in traditional settlement systems.
Towards Greater Transparency and Accessibility
Beyond operational speed, BNPP AM sees this development as a cornerstone of its strategy to modernize asset management infrastructure. The tokenized MMF structure enhances transparency, reduces manual processing, and opens the door for more inclusive investment opportunities.
Historically tailored for institutional investors due to regulatory and operational hurdles, money market funds could now become more accessible to retail investors. With blockchain’s real-time monitoring, secure storage, and automated compliance features, BNPP AM envisions a future where investment participation is broader and more frictionless.
Paving the Way for a Digital Investment Future
This milestone underscores BNPP AM’s commitment to driving innovation in digital finance. The firm has long championed the integration of emerging technologies and sees tokenization as a key component of reshaping how financial instruments are issued, managed, and traded.
“This is not just a test,” a BNPP AM spokesperson said. “It’s part of a long-term roadmap to digitally transform client interactions with money market instruments and beyond.”
As the financial sector increasingly embraces DLT, BNPP AM’s tokenized MMF serves as a tangible example of how legacy systems can evolve. Analysts and regulators alike will be watching closely to gauge the broader implications for market structure, compliance, and investor access.
For BNPP AM, the message is clear: the future of asset management is digital, and the journey is already well underway.
