BNP Paribas to issue tokenized MMF, improving liquidity and efficiency through Practical Blockchain.

## Expecting to improve liquidity through tokenization

BNP Paribas Asset Management, the asset management arm of French financial giant BNP Paribas, announced on the 22nd that it will issue tokenized money market funds (MMFs) on the blockchain.

By issuing native tokenized shares of existing money market funds in Luxembourg, it utilizes the fund's past performance while processing cross-border transactions with counterparties in France.

What is a Money Market Fund (MMF)?

A type of investment trust that primarily invests in highly secure and liquid short-term financial products (such as government bonds, commercial paper, and negotiable deposits), used as a short-term fund management tool for individual and institutional investors.

As a technology provider, we are collaborating with BNP Paribas Securities Services as a fund trading service provider, including Allfunds Blockchain.

By tokenizing stocks into native tokens, it enables immediate order execution based on the net asset value (NAV) per fund share at that moment, rather than the current batch-type order execution (which consolidates multiple orders).

In the future, it is said that we will be able to provide customers with even faster and more efficient payments.

He continued by stating that one of the advantages of tokenization is that it allows not only institutional investors but also individual investors to access money market funds. It provides high liquidity, allowing investors to access funds according to their needs.

Furthermore, it continued that distributed ledger technology (DLT) enhances efficiency and security.

Paul Daily of BNP Paribas Securities Services commented as follows.

The tokenization of MMF is attracting attention due to the potential for expanding distribution to a broader investor base and improving liquidity through direct transactions and instant settlement.

We are proud to further strengthen the foundation for providing services related to security tokens, in accordance with our goal of providing a model that seamlessly integrates traditional assets and tokenization assets.

Additionally, Thibaut Malan, the money market fund manager at BNP Paribas Asset Management, explained that he is committed to continuing to be at the forefront of financial innovation.

Tokenization of MMF and digital cash solutions such as wholesale central bank digital currencies (CBDC) are essential for providing customers with effective and efficient business solutions.

BNP Paribas participated in the CBDC pilot projects conducted by the European Central Bank (ECB) and others in 2024.