BNP Paribas Backs Ethereum In Public Tokenization Push

BNP Paribas putting a tokenized money market fund on Ethereum feels like a gradual but meaningful shift in institutional comfort with public infrastructure. It’s still permissioned, so this isn’t open DeFi access, but using mainnet instead of a private ledger suggests they value interoperability and liquidity over full control. That’s a notable change in posture for a major European bank.

From an incentives standpoint, this looks less ideological and more operational. Public chains offer settlement efficiency and potentially new fee streams, while keeping compliance intact. The real question is whether institutions eventually expand access or keep these structures tightly gated. If liquidity migrates onchain, does the competitive pressure force broader participation over time?