BNP Paribas Asset Management (BNPP AM) has issued a native digital share of a money market fund (MMF) on the Allfunds blockchain. Most tokenized funds are based on existing funds, while this time a brand new native digital share has been created. The new share was then used in a cross-border transaction with a French counterparty.

BNPP AM acts as the transfer agent and transaction service provider, with Allfunds Blockchain as the technology partner. The appeal of the solution lies in enhancing efficiency, shifting from batch subscriptions and redemptions to immediate trading at net asset value. Furthermore, with the European Central Bank set to launch a wholesale DLT settlement scheme, faster settlement is expected.

BNPP AM's move is also exploring the potential of MMF tokenization to attract crypto-native institutions and retail investors.