BNPP AM Launches Natively Tokenized Money Market Fund

BNP Paribas Asset Management (‘BNPP AM’) announced the launch of natively tokenised Money Market fund shares, testing cross-border transactions based on Distributed Ledger Technology (“DLT”), in collaboration with Allfunds Blockchain as tech provider and BNP Paribas’ Securities Services business as transfer agent and dealing services provider. According to a story in Markets Media news, this initiative follows the 2024 Euwholesale CBDC1 experimentations and marks another significant step in the development of digital assets for BNPP AM clients. By issuing a native tokenised share class of an existing money market fund in Luxembourg, BNPP AM is leveraging the fund’s tracking history and processing cross-border transactions with a French counterparty. The primary objective of this pioneering project is to use the blockchain-based system to enhance operational efficiency and provide real-time information on subscriptions and redemptions. Specifically, having the shares natively tokenised enables on-chain instantaneous order execution based on the NAV receipt instead of today’s batch driven order execution. It also enables faster and more efficient settlements for clients in the future, as previously achieved within the Eurosystem experiments.