BNP Paribas AM Pioneers Tokenisation, Navigating Challenges and Industry Engagement
BNP Paribas Asset Management is at the forefront of tokenisation, a gradual but complex shift in the financial landscape. The path involves challenges like regulation and incentives, but the firm has already made significant strides.
BNP Paribas AM invested in a tokenised bond issued by EDF in 2022, embedding ESG data directly into the token. This move reflects the firm's pragmatic yet forward-leaning stance on tokenisation. In May, they launched a natively tokenised share class of a money market fund, testing investment, settlement, and redemption entirely on a private blockchain. The firm is exploring both private and public blockchains to be ready for whichever model dominates. However, challenges persist, including cybersecurity, interoperability, and unclear regulatory frameworks. Despite these hurdles, financial institutions worldwide are deeply engaged with the concept of tokenisation, indicating a broader industry trend.
BNP Paribas Asset Management is actively involved in the tokenisation of digital securities, aiming to build and test a fully on-chain value chain. While private blockchains offer more control, public blockchains provide faster interoperability. The firm's advancements reflect the industry's evolving view of tokenisation as a fundamental change in the asset management landscape.
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