HSBC and BNP Paribas Join Canton Foundation to Advance Institutional Tokenization
Global financial institutions BNP Paribas and HSBC have officially become members of the Canton Foundation, the governance body overseeing the Canton Network—a blockchain platform dedicated to institutional finance and real-world asset (RWA) tokenization. This development highlights sustained institutional engagement with blockchain technology to digitize tangible assets.
Strengthening Governance and Industry Collaboration
The Canton Foundation, now comprising over 30 members including Goldman Sachs, Hong Kong FMI Services, and Moody’s Ratings, provides strategic oversight for the network while promoting blockchain-based financial applications. The Canton Network prioritizes regulatory compliance and interoperability, aiming to streamline asset tokenization for institutional participants.
BNP Paribas and HSBC Drive Institutional Blockchain Adoption
Hubert de Lambilly, BNP Paribas’ Head of Global Markets, emphasized the bank’s commitment to distributed ledger technology as a means to meet evolving client needs. BNP Paribas’ engagement builds upon its previous investment in Digital Asset, the company behind the Canton Network, which raised $135 million to accelerate decentralized finance adoption.
John O’Neil, HSBC’s Head of Digital Assets and Currencies, noted that joining the foundation supports the maturation of the blockchain industry and fosters genuine liquidity in digital asset markets. HSBC has been active in blockchain innovation, reportedly preparing to apply for a stablecoin license in Hong Kong and exploring tokenization in custody and bond issuance.
Growing Institutional Momentum in Tokenized Real-World Assets
Institutional demand for tokenized real-world assets is shaping the trajectory of crypto markets in 2025, marking a shift from prior retail-dominated cycles. The World Economic Forum recently underscored the collaboration among institutions, regulators, and technology firms to establish trusted, interoperable frameworks necessary for tokenization’s potential to materialize.
Regulatory developments, such as the US GENIUS Act and related market structure legislation, have increased institutional confidence in blockchain adoption. While initial tokenization efforts have focused on private credit and Treasury bills, initiatives are expanding into equities, commodities, and energy infrastructure.
Moreover, digital asset exchanges like Kraken are actively engaging with regulators, including the SEC’s crypto task force, reflecting the importance of regulatory dialogue in the sector’s evolution.
FinOracleAI — Market View
The inclusion of BNP Paribas and HSBC in the Canton Foundation signals growing institutional validation of blockchain tokenization platforms, particularly for real-world assets. This move is likely to enhance market confidence in tokenization as a viable financial infrastructure, potentially accelerating adoption among traditional finance players.
Risks remain around regulatory clarity and technology integration, which could temper near-term progress. Key factors to monitor include regulatory developments in major jurisdictions and the pace at which tokenized asset use cases expand beyond initial markets.
Impact: positive
