Against a backdrop of rapid technological evolution, the asset servicing industry is entering a prolonged transition period where traditional and digital assets will coexist. In this discussion, Wayne Hughes explains how BNP Paribas helps clients navigate this complexity. Having worked on a significant number of live initiatives, BNP Paribas is designing operating models that turn theory into practice, bridging the gap between existing systems and a digitally enabled future.
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How will tokenisation modernise capital markets?
The potential of tokenisation lies in its ability to deliver real, tangible benefits to clients by reducing friction across the entire asset lifecycle. Wayne highlights the transformational impacts of moving away from disconnected ledgers and long processing chains toward a shared ledger.
By utilising smart contracts to power automated end-to-end processes, tokenisation offers great potential to make the markets:
- Faster and more efficient: accelerating settlement processes and simplifying complex operations
- More transparent: providing enhanced visibility through shared, real-time data
- More liquid: moving closer to an “always-on” financial ecosystem that improves liquidity management
Wayne notes that as the market matures, the focus of BNP Paribas is now shifting from experimentation to developing its first production-ready solutions. As a starting point, this focuses on the most mature use cases for which there is client demand, including tokenisation and distribution of fund shares, as well as wallet management and digital cash solutions.
Navigating the challenges of a blockchain transition
While the building blocks are falling into place, there are several critical challenges that the industry needs to address before reaching mainstream adoption. Wayne identifies three key areas:
- Digital cash: essential for enabling on-chain delivery versus payment, the industry will need to support multiple forms of digital cash across different jurisdictions
- Scalability: to unlock the full benefits of tokenisation, the industry needs a critical mass of tokenised assets, which is likely to be driven by the creation of “digital twins”, the tokenised representations of traditional assets
- Fragmentation: the industry must converge around a limited number of blockchain networks and use cases where there is clear demand and a compelling return on investment
We will continue to adapt our roadmap as the ecosystem develops and, most importantly, as our clients’ needs evolve,” Wayne adds.
BNP Paribas has anticipated and is proactively addressing these challenges. On the digital cash front, BNP Paribas is building capabilities for scalable payments, liquidity and interoperability solutions that deliver real treasury value. These include, tokenised commercial bank deposits[1] [2], wholesale CBDC[3], private payment infrastructures[4] and stablecoins (EUR and USD).
On fragmentation, the bank combines proprietary developments and technical partnerships to enable seamless connectivity with multiple blockchains. Our Digital Assets Wallets & Networks (DAWN) solution is being built with interoperability in mind, facilitating connectivity with key blockchains (e.g. Ethereum, Canton) and integration with existing systems and channels. On the other hand, technical partnerships will grant our clients the flexibility required to connect to more specific ledgers.
Consolidating traditional and digital assets servicing
The roadmap for digital assets is not about immediate replacement, but strategic integration. Wayne emphasises that the goal is to help clients navigate a transition period where both traditional and digital assets must function together seamlessly.
BNP Paribas designs operating models that support this dual reality, allowing clients to leverage existing communication channels, operational processes, and reporting across both asset classes.
By minimising complexity, we aim to make the adoption of digital assets as straightforward as possible, allowing clients to move forward with confidence,
Wayne concludes.
[1] Tokenised deposits pilot with Ant International, BNP Paribas, September 2026
[2] Carrefour performs pilot tokenised settlement in the context of Project Agorá, BNP Paribas, August 2026
[3] BNP Paribas participated in Eurosystem trials of wholesale settlement DLT solution, BNP Paribas, 13 December 2024
[4] BNP Paribas joins the £FnPS and completes interest payment swap with Lloyds bank, Fnality, 28 July 2025