BNP Paribas AM launched a money market fund with shares issued natively on blockchain infrastructure.
The tokenized fund allows near-instant order execution and real-time transaction visibility for investors.

BNP Paribas Asset Management (BNPP AM) has launched a class of money market mutual fund shares that live directly on the blockchain, aka natively tokenized. This is not just a digital patch of traditional assets, but a new form that was created from the start to live and operate fully on a DLT (Distributed Ledger Technology)-based system.

Interestingly, this process is not just about technology. These shares are traded and settled directly on the blockchain network, without the need for legacy infrastructure that usually causes hassles regarding reconciliation, NAV batches, or annoying settlement wait times.

The underlying fund is located in Luxembourg, and the first investor is in France, but the process? Cross-border, almost instant.

BNP Paribas Asset Management (BNPP AM), the largest bank in France, has announced the launch of natively tokenized money market fund shares to test cross-border transactions based on distributed ledger technology (DLT). https://t.co/iQQzHlqm6G

— Wu Blockchain (@WuBlockchain) May 25, 2025

BNP Paribas Redefines How Mutual Funds Work

What if buying mutual fund units didn’t require waiting two business days just to find out how much they were worth when purchased. With this approach, orders from investors are processed immediately as they come in, using the NAV at the time of receipt, not the afternoon recap results.

Furthermore, transaction status can be tracked in real-time. If you used to guess, now you can just look directly at the blockchain.

BNPP is collaborating with Allfunds Blockchain in this project, while BNP Paribas’ Securities Services itself acts as a transfer agent. They want to unite a digital ecosystem that can accommodate the needs of asset managers, banks, and of course, investors.

Stablecoins, Public Blockchains, and the Quiet Race Among Global Banks

On the other hand, a wave of adoption of similar technologies is starting to be clearly seen among the world’s major banks. JPMorgan Chase, for example, recently released its public blockchain network specifically designed for institutional transactions. Its approach prioritizes transparency, interoperability, and efficiency, three words that are starting to feel mandatory in today’s banking dictionary.

Not only that, there is another movement that is secretly cooking up quite an ambitious plan. J.P. Morgan Chase, Bank of America, Citigroup, and Wells Fargo are reportedly considering forming a joint stablecoin consortium. They want to create a more efficient interbank value transfer system.

Although still only in discussions, the potential for this kind of collaboration could be a game changer, especially if regulations do not hinder and customers really see the direct benefits.

Meanwhile, last week, Standard Chartered expanded its footprint in the institutional crypto space by partnering with FalconX. The platform provides digital asset trading and custody support for institutional clients. So, while other banks are just talking about digital strategies, Standard Chartered is already in the scene of providing infrastructure.

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Filed under: Bitcoin - @ May 25, 2025 8:00 am