BNP Paribas Asset Management Pioneers Tokenisation with EDF Bond, Archax Launch
The financial world is abuzz with the recent publication of The Funds Europe - CACEIS research report on Tokenisation. Meanwhile, BNP Paribas Asset Management has made waves by investing in a tokenised bond issued by EDF, embedding ESG data into the token. The company is taking a pragmatic approach to the management of digital assets, despite challenges and concerns.
The report highlights several hurdles in tokenisation, including regulatory complexities, coordinating multiple stakeholders, and limited incentives for issuers to opt for tokenised issuance. However, BNP Paribas Asset Management's recent investment signals a step forward. The company has embedded ESG data into a tokenised bond issued by EDF, demonstrating a practical application of asset management.
Cybersecurity, interoperability, and regulatory clarity are among the concerns shaping blockchain adoption. Despite these challenges, the industry is on the brink of transformation. In May 2022, Archax launched a natively tokenised share class of a money market fund, holding funds from abrdn, BlackRock, State Street, and Legal & General. This move strengthens the institutional credibility of asset management and positions the Hedera network as a key player.
BNP Paribas Asset Management is actively exploring the tokenisation landscape. The company is testing both private and public blockchains to be prepared for the dominant model. Its goal is to build and test a fully on-chain value chain, from tokenised investment instruments to tokenised funds using digital cash. In May, the company launched a natively tokenised share class of a money market fund, testing investment, settlement, and redemption on a private blockchain.
The tokenisation of digital assets is gaining momentum, with BNP Paribas Asset Management leading the way. Despite challenges and concerns, the company's pragmatic approach and practical applications, such as the EDF bond and money market fund, are paving the way for a transformed financial industry. As the industry engages deeply with the concept of tokenisation, the future promises exciting developments.
Read also:
- Industrial robots in China are being installed at a faster rate than in both the United States and the European Union, as the global market for these robots faces a downturn.
- NATO's Massive Naval Drill Shows Unity Against Russian Aggression
- Undeads Games Reaches $30 Million TVL and Gears Up for MMORPG Debut
- Hyundai N affirms transition to hybrid performance-centric models, initiating with Tucson N
