BNP Paribas and HSBC Join Canton Foundation, May Signal Growing Institutional Interest in Real-World Asset Tokenization

• Major banks join Canton Foundation to advance regulated RWA tokenization.

• BNP Paribas and HSBC membership boosts institutional credibility and interoperability efforts.

• Over 30 foundation members now include banks, market infrastructure firms and ratings agencies.

Primary keyword: Canton Network — News: BNP Paribas and HSBC join Canton Foundation, accelerating regulated RWA tokenization; read for details and implications.

BNP Paribas and HSBC are the latest institutions to join the Canton Foundation, signaling growing institutional adoption of real-world asset tokenization.

Two major global banks — BNP Paribas and HSBC — have joined the Canton Foundation, the governance body for the tokenization-focused Canton Network. The move underlines broadening institutional interest in tokenized real-world assets (RWAs) and compliance-first blockchain adoption.

The foundation announced the new memberships on Tuesday, joining recent entrants such as Goldman Sachs, Hong Kong FMI Services and Moody’s Ratings. With more than 30 members, the Canton Foundation sets strategic direction and governance for Canton Network’s RWA use cases.

Canton Network is designed for institutional finance, prioritizing real-world asset tokenization, regulatory compliance and cross-system interoperability. The network supports financial workflows that require strong privacy, settlement finality and legal enforceability.

Hubert de Lambilly, BNP Paribas’ head of global markets, said the bank’s participation reflects a commitment to distributed ledger technology “to serve our evolving client needs.” BNP Paribas previously participated in a $135 million funding round for Digital Asset, the developer of Canton Network.

John O’Neil, head of digital assets and currencies at HSBC, said joining the foundation will help mature the industry and promote liquidity in tokenized markets. HSBC has publicly explored stablecoin licensing and blockchain use cases in custody, tokenization and bond issuance.

Source: Cointelegraph

What is the Canton Network and why are banks joining?

Canton Network is a permissioned blockchain framework built for institutional finance that enables compliant tokenization of real-world assets. Banks join the Canton Foundation to influence governance, ensure regulatory alignment and develop interoperable workflows for settlements, custody and securities tokenization.

How does tokenization of real-world assets work on Canton Network?

Tokenization on Canton maps legal and financial rights to digital tokens, preserving legal enforceability while enabling programmable settlement. Canton emphasizes privacy-preserving interoperability between institutions and existing market infrastructure.

Industry groups and organizations such as the World Economic Forum have highlighted the need for trusted frameworks and multi-stakeholder collaboration to scale tokenization. Early deployments focus on private credit and Treasury bills, with pilots extending to equities, commodities and energy assets.

Why does institutional membership matter for tokenized RWAs?

Institutional membership brings legal, operational and market credibility to tokenization initiatives. Banks contribute custody expertise, compliance frameworks and client distribution—key elements for scaling RWAs beyond proof-of-concept pilots.

Regulatory progress also matters: recent stablecoin and market-structure proposals in the United States and new licensing regimes in other jurisdictions are encouraging institutions to pilot tokenization at scale.

Source: SMQKEDQG

Frequently Asked Questions

How are market participants deploying tokenization today?

Initial deployments focus on private credit, Treasury bills and structured products where legal rights are well-defined. Exchanges, custodians and infrastructure providers are testing tokenized settlement, custody and compliance tooling.

Market participants including exchanges and brokerage firms are engaging with regulators to define permissible models for tokenized securities and trading infrastructure.

Key Takeaways

• Institutional adoption grows: BNP Paribas and HSBC joining Canton Foundation underscores banks’ strategic interest in tokenization.
• Governance matters: Foundation membership supports regulatory alignment, interoperability and legal clarity for tokenized RWAs.
• Regulatory catalysts: Regulatory developments—stablecoin frameworks and licensing regimes—are encouraging institutional pilots and productization.

Conclusion

The inclusion of BNP Paribas and HSBC in the Canton Foundation marks a significant step in institutionalizing tokenized real-world assets on the Canton Network. As governance, regulatory clarity and technical interoperability continue to improve, expect more large-scale pilots and gradual integration with existing market infrastructure. For ongoing coverage and analysis, follow COINOTAG’s reporting and updates.

Published: 2025-09-09 | Updated: 2025-09-09 | Author: COINOTAG