BNP Paribas runs a permissioned Ethereum pilot for fund shares

A Paris-headquartered asset manager executed a limited internal experiment to put a cash-fund share class onto the Ethereum public ledger using its in-house token tooling, AssetFoundryTM.

The pilot created a set of digital shares for a France-registered money-market vehicle and attached a permissioned access model so only approved counterparties could hold or move tokens.

Workflows under review covered issuance mechanics, the transfer-agency role and how custodial and regulatory checks integrate into a public chain connection.

BNP Paribas used its securities services arm to fulfil transfer-agent duties while the asset-management arm acted as the issuer, keeping the roll-out intra-group and restricted.

The trial marks the firm’s second experiment placing fund share classes onchain and follows earlier collaboration with a third-party blockchain network focused on native fund tokens.

Beyond this test, the bank is also linked to broader industry trials exploring onchain messaging and token-based settlement rails with major market infrastructures and banks.

Key design choices emphasized regulatory alignment: controls were embedded to ensure only authorised participants can transact, and the setup remained observable to compliance teams.

Technically, the pilot demonstrates bridging traditional transfer-agent responsibilities into token lifecycle events recorded on a public execution layer while gating participant rights off-chain.

Operational aims included assessing whether tokenized shares can streamline reconciliations, reduce manual touchpoints and preserve investor protections under existing fund rules.

By keeping the experiment limited and internal, BNP Paribas sought to validate processes without exposing client assets to open-market risk or regulatory uncertainty.

The outcome will inform whether public-chain infrastructure—when paired with permissioned controls—can fit inside regulated fund operations and broader bank-led token initiatives.