Lawrence Jengar
Jun 12, 2026 14:58
Franklin Templeton and BNP Paribas see tokenization as key to improving capital efficiency and liquidity in EU capital markets. Here’s why.
Major financial players Franklin Templeton and BNP Paribas are turning to tokenization as a means to modernize Europe’s capital markets, citing gains in capital efficiency and liquidity through blockchain technology. Speaking at the WAIB Summit 2026 in Monaco, executives highlighted how tokenized assets and stablecoins could streamline settlement, enhance collateral mobility, and enable new cross-border financial opportunities.
The shift toward tokenization reflects broader institutional adoption of blockchain technology. Rafael Mastroberardino, Franklin Templeton’s head of digital assets partnership development, emphasized the “optionality and flexibility” tokenized assets provide, driving interest from banks and corporations to deploy their own offerings. BNP Paribas’ Julien Clausse added that blockchain’s ability to host multiple asset types on a single chain could unlock new use cases, provided interoperability challenges are addressed.
Why Tokenization Matters
Tokenization, the process of representing real-world assets (RWAs) such as bonds, equities, or real estate as digital tokens on a blockchain, offers several efficiency gains. Instant settlement (T+0) reduces counterparty risk compared to traditional T+1 or T+2 cycles, while programmable collateral improves liquidity and loan-to-value ratios. Additionally, fractional ownership and 24/7 trading broaden market access and reduce capital lock-ups.
These benefits are already attracting significant institutional attention. On June 11, Digital Asset Holdings announced a $355 million funding round to expand its Canton Network, a blockchain infrastructure designed for financial institutions to tokenize and settle traditional securities. Canton’s pilot participants include heavyweights like Goldman Sachs, BNP Paribas, and Deutsche Börse, underscoring the sector’s momentum.
Wall Street Joins the Movement
In the U.S., regulatory clarity has further accelerated tokenization. The Securities and Exchange Commission (SEC) approved Nasdaq’s pilot program for trading tokenized stocks in March 2026, while the New York Stock Exchange (NYSE) partnered with Securitize to build blockchain-based trading infrastructure. These moves align with broader plans for tokenized securities venues offering instant settlement and 24/7 trading.
Globally, Europe’s MiCA regulatory framework and similar initiatives in Asia and the Middle East have laid the groundwork for integrating tokenized assets into mainstream finance. As of June 2026, onchain RWAs (excluding stablecoins) are valued at roughly $18 billion, a staggering 18x growth since 2022. Tokenized U.S. Treasuries currently lead this segment, reflecting institutional preference for high-quality collateral.
Big Banks Aren’t Waiting
Institutional interest in tokenization is intensifying beyond Europe. JPMorgan Chase and Bank of America are reportedly developing a tokenized deposit network targeted for a 2027 launch, blending blockchain’s programmability with traditional banking security. This follows the introduction of tokenized gold by Cap and Matrixdock into onchain credit markets earlier this month.
The growing adoption highlights a shift from experimental crypto-native projects to regulated financial infrastructure. Blockchain technology is increasingly viewed as a tool to reduce settlement latency, unlock trapped collateral, and improve balance-sheet efficiency—a far cry from its early associations with speculative trading.
What’s Next?
As tokenization frameworks mature, expect more large-scale institutional pilots and regulatory engagement. Projects like Canton and Nasdaq’s tokenization platform aim to prove the scalability and security of onchain capital markets. With the global crypto market cap nearing $2.17 trillion, the infrastructure to support tokenized assets is robust and expanding. For traders, keeping an eye on regulated tokenization initiatives could provide valuable insights into the next phase of blockchain-based finance.
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