BNP Paribas's asset management division has initiated a pilot project utilizing Ethereum to investigate the tokenization of financial instruments via a public blockchain.
This project involves the issuance of tokenized shares from the BNP Paribas Asset Management money market fund through the AssetFoundry platform. The tokens will be available only to authorized participants under a restricted access model.
According to the bank, this strategy enables them to evaluate the integration of public networks into regulated fund frameworks while ensuring high standards of governance and investor protection.
This pilot comes after the asset manager's earlier introduction of a comparable digital product on a private blockchain in Luxembourg.
