Tokenization Could Boost EU Capital, say Franklin Templeton, BNP Paribas

Institutional interest in tokenization is accelerating as large banks, asset managers and market infrastructure players explore how on-chain assets and stablecoins can lift capital efficiency and liquidity. At the WAIB Summit 2026 in Monaco, executives from Franklin Templeton and BNP Paribas outlined how tokenized assets could modernize Europe’s capital markets by streamlining settlement, improving collateral mobility, and enabling more seamless cross-border activity.

Rafael Mastroberardino, head of digital assets partnership development at Franklin Templeton, framed tokenization as a path to greater “optionality and flexibility” for both banks and corporate treasuries—and as a catalyst for institutions to roll out their own offerings. Julien Clausse, head of BNP Paribas CIB’s tokenization platform, emphasized that blockchain can host multiple asset types on a single chain, provided those assets can interact meaningfully, unlocking new institutional use cases.

The momentum reflects a broader shift: tokenization is moving from experimentation to scalable infrastructure, with major US banks reportedly pursuing tokenized deposit networks to preserve regulated channels while delivering the speed and programmability associated with blockchain-based assets. JPMorgan Chase and Bank of America were cited in industry coverage as planning a tokenized deposit network for a launch in the first half of 2027.

Key takeaways

• European institutions see tokenization as a strategic lever to boost capital efficiency, settlement speed, and cross-border activity, underscored by executives from Franklin Templeton and BNP Paribas at WAIB Summit 2026.


• Regulators and exchanges are moving from pilots to on-ramp infrastructure for tokenized securities, with Nasdaq’s trading pilot approved by the SEC and NYSE partnering with Securitize to build blockchain-based trading for stocks and ETFs.


• Investment is fueling the rails for on-chain settlement, notably Digital Asset Holdings’ $355 million funding round to expand Canton Network for private, privacy-preserving tokenization and settlement of traditional securities.


• Industry pilots already span major banks and custodians; the Canton Network has been tested with Goldman Sachs, BNY Mellon, BNP Paribas, Standard Chartered, Societe Générale and Deutsche Börse, signaling growing institutional readiness.

Europe’s tokenization momentum deepens

Across Europe, the prospect of tokenized assets and stablecoins reshaping capital markets is gaining political and commercial traction. The WAIB Summit in Monaco drew executives keen to connect tokenization with real-market outcomes—faster settlement cycles, more fluid collateral movements, and the potential for cross-border collateral reuse and liquidity flows. The underlying idea is to move beyond isolated pilots and toward interoperable rails that can handle multiple asset classes on a shared distributed ledger.

For Franklin Templeton’s Mastroberardino, tokenization brings tangible “optionality and flexibility” that could influence how institutions structure funding, manage liquidity and deploy capital. BNP Paribas’ Clausse echoed the sentiment, arguing that multi-asset on-chain platforms could unlock use cases that traditional rails struggle to accommodate, so long as those assets can interact in a coherent, governance-driven environment.

Regulatory and market infrastructure momentum

Beyond Europe, regulatory and exchange moves are ramping up the momentum behind tokenized markets. On March 18, the U.S. Securities and Exchange Commission approved Nasdaq’s pilot proposal to enable trading of tokenized versions of high-volume stocks and other securities. Days later, the New York Stock Exchange announced a partnership with tokenization platform Securitize to build blockchain-based trading infrastructure for Wall Street, including tokenized shares and exchange-traded funds.

The broader aim, as articulated by Intercontinental Exchange (ICE), is to create a tokenized securities venue with 24/7 trading, instant settlement, stablecoin-based funding, and on-chain settlement. This signals a push toward a more programmable, continuous market for traditional assets, subject to regulatory guardrails and privacy considerations.

In parallel, the sector is attracting substantial venture and strategic capital. Digital Asset Holdings recently closed a $355 million funding round led by Andreessen Horowitz’s crypto arm, with the round valuing the company at about $2 billion. The fresh capital is earmarked to expand Canton Network, a platform designed to enable financial institutions to tokenize and settle traditional securities while preserving data privacy on-chain. Canton has already been piloted by a roster of major banks and custodians, including Goldman Sachs, BNY Mellon, BNP Paribas, Standard Chartered, Société Générale and Deutsche Börse.

Building the rails for on-chain settlement

The Canton Network represents a focused effort to reconcile the needs of regulated institutions with the benefits of blockchain-based settlement. Canton’s approach centers on privacy-preserving tokenization and settlement workflows that can coexist with existing custody and compliance regimes. The platform’s early deployments with large incumbents suggest a path toward real-world, cross-institutional use cases—from private placements and securitized products to more fluid asset tokenization across borders.

As with any frontier technology, the path to broad adoption hinges on a mix of clarity from regulators, interoperability between networks, robust risk controls, and proven operational performance at scale. The current wave of pilots and funding activity indicates serious intent from both banks and market infrastructure players to translate tokenization from a theoretical upgrade into a practical, market-wide framework.

Investors and practitioners should watch upcoming pilot results and interoperability milestones closely. Questions remain about data leakage, cross-border governance, and how custody and settlement constraints will adapt to on-chain processes. Yet the trajectory is clear: tokenization is moving from niche experiments toward the core plumbing of capital markets, promising faster settlement, enhanced collateral mobility, and new possibilities for cross-border finance.

What comes next will hinge on regulatory alignment and the speed with which institutions can demonstrate secure, scalable, and compliant on-chain workflows. For now, the industry appears intent on turning tokenized assets from novelty into a durable, parallel rail for traditional securities.

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