Two major global banks - BNP Paribas $BNP (-0,86 %) and HSBC $HSBA (+0,17 %) - have joined the Canton Foundation, the development organization of the tokenization-focused Canton Network, underscoring the strong interest of institutional investors in real-world applications of blockchain technology.
The Foundation announced on Tuesday that BNP Paribas and HSBC are now also members, alongside recently joined members Goldman Sachs, Hong Kong FMI Services and Moody's Ratings. With more than 30 members, the Canton Foundation provides governance and strategic direction for the network while driving the development of use cases for blockchain-based financial services.
Canton Network is a blockchain designed for institutional financial services with a focus on real-world asset (RWA) tokenization, regulatory compliance and interoperability.
Hubert de Lambilly, Head of Global Markets at BNP Paribas, said the move reflected the bank's commitment to adopting distributed ledger technology "to meet the evolving needs of our clients".
BNP's commitment builds on its previous support for Digital Asset, the company behind the Canton Network. The French bank participated in Digital Asset's $135 million funding round, which the company says is designed to accelerate institutional adoption and decentralized finance initiatives on Canton.
John O'Neil, head of digital assets and currencies at HSBC, said joining the foundation will help foster the maturation of the blockchain industry and support the creation of real liquidity in the digital asset markets.
HSBC has been actively involved in various blockchain initiatives. The company is reportedly preparing to apply for a Hong Kong stablecoin license under the city's new regulatory regime. According to previous statements, HSBC Hong Kong is also exploring blockchain applications in custody, tokenization and bond issuance.
》Institutional interest in tokenized RWAs is growing
Institutional demand for tokenized real assets is shaping the trajectory of cryptocurrencies through 2025, marking a significant departure from previous cycles dominated by private investor speculation in the 2017 and 2021 bull markets.
The World Economic Forum (WEF) recently highlighted this trend, pointing out that the industry is now benefiting from a unique mix of institutions, regulators and technology companies working together to "create trustworthy, interoperable frameworks".
According to the WEF, this collaboration, if successful, could lead to asset tokenization fulfilling its long-promised potential.
Regulation also plays a crucial role. In the United States, the passage of the stablecoin-focused GENIUS Act and the House of Representatives' approval of legislation on market structure and against CBDCs has boosted the confidence of major financial institutions exploring the use of blockchain technology.
To date, efforts related to tokenization have focused on private credit markets and treasury bills. However, the scope is increasingly expanding as experiments are currently being conducted with equities, commodities and energy infrastructure.
As Cointelegraph recently reported, digital asset exchange Kraken has teamed up with the SEC's crypto taskforce to discuss tokenization, underscoring how the future of the sector is increasingly dependent on regulatory dialogue.