BNP Paribas AM launches tokenized shares through Allfunds Blockchain
22 MAY, 2025
BNP Paribas AM has announced today a significant and innovative step with the launch of tokenized shares of money market funds, enabling cross-border operations based on distributed ledger technology (DLT). This initiative is developed in collaboration with Allfunds Blockchain as a technology provider and BNP Paribas Securities Services as a transfer agent and trading services provider. This initiative continues the project driven by the Eurosystem in 2024 around the experiments of CBDC (Central Bank Digital Currency), and constitutes a key advance in the evolution of security tokens for BNP Paribas Asset Management clients.
The issuance of this class of tokenized shares of a Luxembourg money market fund leverages the fund's consolidated history while facilitating cross-border operations with a French counterparty. This pioneering project seeks to use blockchain technology to optimize operational efficiency and provide real-time information on subscriptions and redemptions. The native tokenization of shares will allow orders to be executed instantly on the blockchain, based on real-time net asset value. This advance surpasses the current batch order system and offers clients faster and more efficient settlements, as already demonstrated by the results of the Eurosystem experiments.
Blockchain technology can democratize access to money market funds, extending them beyond institutional investors to a broader base of retail investors. These funds offer high liquidity and flexibility to access capital as needed, while DLT enhances both efficiency and security. This initiative reflects BNPP AM's strong commitment to digital innovation and its dedication to providing more agile and efficient solutions for asset management.
Tokenized MMFs and digital cash solutions, such as wholesale central bank digital currencies (CBDC), are crucial to offering our clients the most effective and efficient trading solutions. By leveraging these innovative technologies, we can streamline processes and improve the overall customer experience. At BNP Paribas Asset Management, we are committed to staying at the forefront of financial innovation, adopting cutting-edge technologies that allow us to offer tailored solutions to our clients and meet their changing needs in a rapidly evolving financial landscape.
Thibault Malin, Deputy CIO of money market funds at BNP Paribas AM
We were very excited to support BNPP AM with this new initiative in Luxembourg, leveraging our previous experience with Allfunds Blockchain, to explore the potential of natively issued tokens. This project allowed us to gain valuable insights into the distinction between the digital representation of a traditional stake in a fund and a native token, which is an imperative step to achieve a more impactful benefit. In addition, the tokenization of the MMFs draws attention for its potential to expand distribution with a broader investor base and offer greater liquidity through direct trading and instant settlement. In this sense, we are proud to further strengthen our foundation to offer security token services to our clients, in line with our ambition to provide a flawless aggregate model across traditional and tokenized assets.
Paul Daly, Director of Distribution Products and Solutions, Securities Services, BNP Paribas
We are delighted to collaborate on this BNPP AM initiative which represents a significant milestone in our strong track record alongside BNP Paribas. Once again, our blockchain platform has confirmed its adaptability and robustness to manage diverse applications with total transaction security. By natively tokenizing money market funds, we fully digitize their entire life cycle, thus responding to the growing demand from both investors and managers seeking greater agility and responsiveness, especially when placing and executing orders. We look forward to the future development of these tokenized funds, which undoubtedly shape up as a fundamental element in the new digital asset ecosystem.
Rubén Nieto, Managing Director of Allfunds Blockchain
