Key facts
- Franklin Templeton and BNP Paribas executives believe tokenized assets and stablecoins can improve capital efficiency in Europe.
- Tokenization offers institutions greater optionality and flexibility, driving interest from banks and corporations.
- Blockchain's ability to host multiple assets on one chain could unlock new institutional use cases.
- Major US banks are reportedly planning a tokenized deposit network for launch in the first half of 2027.
- The SEC approved Nasdaq's pilot for trading tokenized stocks and securities.
- The NYSE is partnering with Securitize to develop blockchain-based trading infrastructure.
- Digital Asset Holdings raised $355 million to expand its financial institution platform, Canton Network.
Executives from Franklin Templeton and BNP Paribas believe that tokenized assets and stablecoins can significantly improve capital efficiency and liquidity within Europe's financial markets. Speaking at the WAIB Summit 2026 in Monaco, they highlighted how these innovations could modernize capital markets by streamlining settlement processes, enhancing collateral mobility, and fostering new avenues for cross-border financial activities.
Rafael Mastroberardino, head of digital assets partnership development at Franklin Templeton, noted that tokenization provides institutions with increased "optionality and flexibility," which is fueling interest from banks and large corporations in developing their own tokenized offerings. Julien Clausse, head of BNP Paribas CIB's tokenization platform, added that blockchain's capability to host diverse assets on a single chain could unlock novel institutional use cases, contingent on the assets' ability to interact.
Institutional engagement with tokenization has surged recently. Major US banks, including JPMorgan Chase and Bank of America, are reportedly preparing to launch a tokenized deposit network in the first half of 2027, aiming to retain deposits within regulated banking systems while leveraging blockchain's speed and programmability. This push aligns with broader Wall Street advancements in tokenization.
On March 18, the US Securities and Exchange Commission greenlit Nasdaq's proposal for a pilot program to trade tokenized versions of high-volume stocks and securities. Subsequently, on March 24, the New York Stock Exchange announced a partnership with tokenization platform Securitize to build blockchain-based trading infrastructure, which will encompass tokenized shares of stocks and ETFs. This initiative is part of Intercontinental Exchange's broader strategy for a 24/7 trading venue for tokenized securities, featuring instant settlement and onchain settlement funded by stablecoins.
Significant investment has also flowed into the sector. Digital Asset Holdings recently secured $355 million in a funding round led by Andreessen Horowitz's crypto arm, reportedly valuing the company at approximately $2 billion. This capital infusion is earmarked for expanding Canton Network, a platform enabling financial institutions to tokenize and settle traditional securities while maintaining data privacy. Canton Network has already undergone pilot testing with prominent institutions such as Goldman Sachs, BNY Mellon, BNP Paribas, Standard Chartered, Société Générale, and Deutsche Börse.