HSBC and BNP Paribas have recently become members of the Canton Foundation, highlighting a strong trend of institutional support for tokenizing real-world assets (RWA) on the blockchain.
This move was announced alongside other notable entrants like Goldman Sachs, Hong Kong FMI Services, and Moody’s Ratings. The Canton Foundation now boasts over 30 members, playing a crucial role in governance and guiding the strategic development of the Canton Network.
The Canton Network is a blockchain infrastructure specifically designed for institutional finance, prioritizing RWA tokenization, regulatory compliance, and interoperability between systems.
Hubert de Lambilly, head of global markets at BNP Paribas, emphasized this partnership as part of the bank’s commitment to leveraging distributed ledger technology to better serve their evolving clients’ needs.
BNP Paribas previously supported Digital Asset, the company behind the Canton Network, through a $135 million funding round aimed at fostering wider institutional adoption and advancing decentralized finance on the platform.
John O’Neil, HSBC’s head of digital assets and currencies, highlighted that joining the foundation aligns with their mission to mature blockchain industry standards and cultivate genuine liquidity in digital asset markets.
HSBC has been active in several blockchain areas, reportedly preparing to apply for a stablecoin license in Hong Kong under new regulatory frameworks. Additionally, HSBC Hong Kong explores blockchain applications in custody services, tokenization, and bond issuance.
Image source: Cointelegraph
Growing Institutional Interest in Tokenized Real-World Assets
Institutional demand for tokenized RWAs is reshaping the cryptocurrency landscape in 2025, moving the focus away from retail speculation seen in previous cycles towards practical financial applications.
The World Economic Forum recently noted that a unique coalition of institutions, regulators, and tech companies is developing trusted frameworks for asset tokenization, potentially unlocking its full potential.
Regulatory clarity is a key driver. In the US, legislative advancements like the stablecoin-focused GENIUS Act and supportive market structure and anti-CBDC bills have increased institutional confidence in blockchain technology.
Currently, tokenization predominantly focuses on private credit and Treasury bills, but expanding experiments include equities, commodities, and energy infrastructure.
Digital asset exchange Kraken’s engagement with the SEC’s crypto task force about tokenization exemplifies how future growth depends on regulatory cooperation.
To further explore this dynamic, watch the embedded video discussing institutional tokenization trends below:
Related: Nasdaq appeals to SEC for permission to trade tokenized stocks
