BNP Paribas Launches Ethereum-Based Money Market Fund Pilot
As of February 20, 2026, BNP Paribas has launched a new blockchain pilot that brings a traditional money market fund onto the public Ethereum network.
- BNP Paribas tokenized a money market fund on Ethereum using a regulated, permissioned model.
- The bank applied the ERC-3643 standard to ensure compliance on a public blockchain.
- It is also leading Qivalis, a MiCA-compliant euro stablecoin backed by major European banks.
- Both moves signal deeper institutional adoption of blockchain infrastructure.
The initiative marks one of the most concrete steps yet by a major European bank to integrate regulated financial products directly with public blockchain infrastructure.
The project, led by BNP Paribas Asset Management, introduces a tokenized share class of an existing French-domiciled money market fund. Rather than using a closed or private ledger, the bank chose Ethereum – but with strict compliance controls built into the system.
Regulated Access On A Public Blockchain
Although the tokens are issued on Ethereum, the model operates under a permissioned access framework. Only verified and eligible participants can hold or transfer the tokenized shares, ensuring alignment with existing regulatory standards.
To enforce these restrictions, the bank implemented the ERC-3643 token standard, designed specifically for regulated financial assets. The pilot tested a full end-to-end workflow – from issuance and transfer agency functions to connectivity with the public chain – involving BNP Paribas’ Asset Management, Corporate & Institutional Banking, and Securities Services divisions.
This follows earlier blockchain experiments by the group, including a tokenized money market fund on a private Luxembourg blockchain in 2025 and a renewable energy project finance bond issued directly on Ethereum in 2022.
Qivalis Stablecoin Targets Institutional Payments
In parallel, BNP Paribas is helping lead Qivalis, a euro-backed stablecoin initiative structured as a consortium of 12 major European banks. Members include ING, UniCredit, BBVA, CaixaBank, DZ BANK, and DekaBank.
The stablecoin, pegged 1:1 to the euro, is backed by segregated reserves including central bank deposits and short-term government paper. It is designed to comply fully with the EU’s Markets in Crypto-Assets (MiCA) regulation and is currently seeking an Electronic Money Institution license from the Dutch Central Bank.
A commercial launch is targeted for the second half of 2026.
Built For Wholesale Finance, Not Retail Trading
Qivalis is positioned as an institutional payment rail rather than a speculative crypto asset. Its primary use cases include programmable payments through smart contracts, atomic Delivery versus Payment settlement for tokenized securities, and real-time liquidity management for multinational corporations.
The project is expected to launch across multiple networks, beginning with Ethereum and expanding to Polygon and Base.
Leadership of the venture includes CEO Jan-Oliver Sell, formerly of Coinbase Germany, and Chairman Sir Howard Davies, previously Chair of NatWest.
Strategic Shift Toward On-Chain Finance
Together, the Ethereum fund tokenization pilot and the Qivalis stablecoin initiative signal a broader strategic shift. Rather than competing with blockchain infrastructure, major European banks are increasingly building directly on top of it.
By combining regulated access models with public-chain efficiency, BNP Paribas appears to be testing a hybrid model – one that preserves compliance while embracing open blockchain settlement layers.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
