BNP Paribas Asset Management has launched natively tokenised money market fund shares on Allfunds Blockchain, marking the “first cross-border digital asset transaction between Luxembourg and France”.
This initiative is the first business-to-business native token transaction across borders, facilitated by distributed ledger technology. Developed in collaboration with Allfunds Blockchain and BNP Paribas’ Securities Services, the move builds on 2024’s Eurosystem wholesale CBDC ( digital currency issued by a central bank for use by central banks, commercial banks or financial institutions to settle tokenised asset transactions) experiments.
By issuing a native tokenised share class from an existing Luxembourg money market fund, BNP Paribas AM has enabled real-time processing of subscriptions and redemptions. According to the provider, the key feature lies in on-chain order execution triggered by the fund’s NAV receipt, replacing traditional batch processing and enabling faster, more efficient settlements.
Thibault Malin, deputy CIO of money market funds, BNP Paribas Asset Management, commented: “Tokenised MMFs and digital cash solutions, such as wholesale Central Bank Digital Currencies (CBDCs), are crucial in providing our clients with the most effective and efficient business solutions. By leveraging these innovative technologies, we can streamline processes and enhance the overall client experience. At BNP Paribas Asset Management, we are committed to staying at the forefront of financial innovation, embracing cutting-edge technologies that enable us to deliver tailored solutions to our clients and address their evolving needs in a rapidly changing financial landscape.”
Paul Daly, head of distribution products & solutions, securities services, BNP Paribas, added: “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 digital representation of a traditional fund share and a native token, that is an imperative step to move to more impactful benefit. Moreover, tokenisation of MMFs gains attention for their potential to broaden distribution with a wider investor base and offer enhanced liquidity through direct trading and instant settlement. It is with this in mind that we are proud to further strengthen our foundation to provide services on new digital assets, to our clients, in line with our ambition to provide a seamless aggregated model across traditional and tokenised assets”.
Ruben Nieto, managing director of Allfunds Blockchain, said: “We are extremely proud and honoured to have participated in this major achievement from BNPP AM marking an important milestone in our long-standing collaboration with BNP Paribas. Our blockchain platform has once again demonstrated its versatility and reliability in handling diverse applications and ensuring secure transactions. Native tokenisation of MMFs will allow to fully digitise the lifecycle of those products for which investors and asset managers alike are demanding shorter timeframe and more reactivity especially in the order placement and execution. We are looking forward to participating in further developments around tokenised MMFs as they have the potential to become a cornerstone of the digital assets’ ecosystem”.
