Major Banks Franklin Templeton and BNP Paribas Predict Tokenization Will Enhance Capital Efficiency in Europe
Senior leaders at Franklin Templeton and BNP Paribas predict that the adoption of tokenized assets and stablecoins will enhance capital efficiency throughout Europe amid Wall Street's growing tokenization initiatives.
According to representatives from both Franklin Templeton and BNP Paribas, major financial institutions are increasingly adopting tokenization as a means to enhance capital efficiency and boost liquidity across markets.
During a panel discussion held at the WAIB Summit 2026 in Monaco, executives from the financial sector explored how stablecoins and tokenized assets have the potential to transform Europe's capital markets through enhanced settlement processes, greater collateral mobility and expanded opportunities for international financial transactions.
According to Rafael Mastroberardino, head of digital assets partnership development at investment management firm Franklin Templeton, tokenization provides institutions with enhanced "optionality and flexibility," which is fueling growing enthusiasm among banks and major corporations to develop their own tokenization solutions.
Meanwhile, Julien Clausse, the head of BNP Paribas CIB's tokenization platform, explained that blockchain technology's capacity to support multiple assets on a single chain has the potential to enable new institutional applications, assuming these assets can effectively interact and integrate with each other.
The institutional sector's appetite for tokenization has gained significant momentum over recent months. Multiple major US banking institutions, among them JPMorgan Chase and Bank of America, are reportedly developing a tokenized deposit network targeted for launch during the first half of 2027, with the goal of maintaining deposits within the regulated banking framework while delivering the speed and programmability characteristics typical of blockchain-based assets.
Wall Street pushes deeper into tokenization
On March 18, Nasdaq received approval from the US Securities and Exchange Commission for its pilot proposal aimed at supporting the trading of tokenized versions of high-volume stocks and securities.
Just days afterward, on March 24, the New York Stock Exchange formed a partnership with tokenization platform Securitize to build blockchain-based trading infrastructure for Wall Street, which will include tokenized shares of stocks and exchange-traded funds.
This initiative represents a component of parent company Intercontinental Exchange's broader strategy for creating a tokenized securities venue that offers 24/7 trading, instant settlement, stablecoin-based funding and onchain settlement capabilities.
The tokenization sector has also drawn substantial investment capital. On Thursday, Digital Asset Holdings successfully raised $355 million in a funding round led by Andreessen Horowitz's crypto arm. Reports suggest the deal valued the company at approximately $2 billion. These funds will be allocated toward expanding Canton Network, a platform specifically designed for financial institutions to tokenize and settle traditional securities while maintaining the privacy of sensitive data.
Canton has already undergone pilot testing by major institutions including Goldman Sachs, BNY Mellon, BNP Paribas, Standard Chartered, Société Générale and Deutsche Börse.