According to Odaily, BNP Paribas Asset Management (BNPP AM) has issued native digital shares of a money market fund (MMF) on the Allfunds Blockchain. Unlike most tokenized funds that are based on existing funds, this initiative involves the creation of entirely new native digital shares. These shares were subsequently used in a cross-border transaction with a French counterparty. BNPP AM acted as the transfer agent and transaction service provider, while Allfunds Blockchain served as the technology partner.
The appeal of this initiative lies in its potential to enhance efficiency by shifting from bulk subscription and redemption to real-time trading based on net asset value. Additionally, with the anticipated introduction of a wholesale DLT settlement solution by the European Central Bank, faster settlement times are expected.
BNPP AM's move also explores the potential of MMF tokenization to attract both crypto-native institutions and retail investors.