HSBC & BNP Paribas Join Canton To Drive Institutional Tokenization

Key Takeaways

• BNP Paribas and HSBC have joined the Canton Foundation, strengthening the push for institutional tokenization.

• The Canton Network is purpose-built for real-world asset tokenization and compliant financial infrastructure.

• Institutional interest is replacing retail-driven hype cycles in crypto.

• Regulatory progress in the U.S. and globally is acting as a catalyst for adoption.

• Tokenization efforts are expanding beyond fixed-income markets into equities and commodities.

What Is The Canton Foundation?

Canton Network: A Blockchain For Institutions

The Canton Foundation provides governance, strategic alignment, and development support for the Canton Network, a privacy-enabled blockchain optimized for institutional use.

It focuses on:

• Real-world asset tokenization

• Regulatory interoperability

• Cross-platform financial services

With over 30 member organizations, the Canton Foundation is rapidly becoming a collaborative hub for banks, regulators, and financial service providers.

The Canton Network also recently secured a partnership with Chainlink, the latter becoming the only crypto native to join the GSF.

Source: X (@WeeklyCrypto)

Key Members So Far

In addition to BNP Paribas and HSBC, the foundation now includes:

• Goldman Sachs

• Hong Kong FMI Services

• Moody’s Ratings

This diverse and growing ecosystem reflects institutional confidence in blockchain-based infrastructure for financial applications.

HSBC & BNP Paribas: Why They Joined

BNP Paribas: Strengthening Blockchain Commitments

Hubert de Lambilly, Head of Global Markets at BNP Paribas, described the bank’s membership as a “commitment to adopting distributed ledger technology to serve our evolving client needs.”

BNP Paribas has a history with Digital Asset, the company behind Canton Network. The bank previously participated in Digital Asset’s $135 million funding round, aimed at accelerating adoption of decentralized finance and tokenization.

HSBC: Driving Liquidity and Innovation

John O’Neil, Head of Digital Assets and Currencies at HSBC, emphasized the bank’s goal to “foster industry maturation” and support real liquidity in digital markets.

HSBC has already been exploring:

• Stablecoins, with a license application reportedly underway in Hong Kong

• Blockchain for custody and bond issuance

• Tokenized asset management initiatives

Institutional Tokenization Gains Global Traction

A 2025 Shift Toward Real-World Assets

Unlike previous crypto bull cycles in 2017 and 2021, which were dominated by retail speculation, 2025 is shaping up to be the year of institutional tokenization.

This shift has been recognized by the World Economic Forum (WEF), which praised recent collaboration between regulators, financial institutions, and technology firms.

Source: World Economic Forum

According to the WEF, building trusted, interoperable frameworks is key to unlocking tokenization’s long-term potential.:

“The tokenization of real-world assets is no longer a concept; it’s becoming a cornerstone of modern finance.”

Regulation Is A Catalyst, Not A Roadblock

In the U.S., legislative moves such as the GENIUS Act and market structure bills passed by the House of Representatives have instilled new confidence among institutions.

U.S. President Donald Trump Signing The GENIUS Act

Source: Associated Press

These regulatory developments are seen as critical in paving the way for broader blockchain adoption.

Expanding Tokenization Use Cases

Beyond Private Credit and Treasury Bills

To date, institutional tokenization has primarily focused on:

• Private credit markets

• U.S. Treasury bills

However, experiments are now expanding into:

• Equities

• Commodities

• Energy infrastructure

SEC Engagement Signals Growing Legitimacy

Digital asset exchange Kraken has reportedly engaged with the SEC’s crypto task force to discuss regulatory frameworks for tokenization, illustrating the growing dialogue between industry leaders and U.S. regulators.

FAQ

What is institutional tokenization?

Institutional tokenization is the process by which large financial institutions tokenize real-world assets (such as bonds, equities, or real estate) using blockchain technology to improve efficiency, compliance, and liquidity.

Why is institutional tokenization important?

It allows for greater transparency, faster settlement times, and lower costs in traditional financial markets — potentially revolutionizing how assets are issued, traded, and managed.

What is the Canton Foundation?

The Canton Foundation governs the Canton Network, a blockchain infrastructure designed specifically for institutions. It brings together banks, regulators, and tech firms to standardize tokenization frameworks.

What assets are currently being tokenized?

So far, institutions are focusing on tokenizing private credit, Treasury bills, and increasingly, equities, commodities, and infrastructure projects.

How does regulation affect institutional tokenization?

Clear and favorable regulatory frameworks, such as the GENIUS Act in the U.S., are essential to building institutional confidence and fostering broader adoption.