Blockchain’s Quiet Revolution Gains Institutional Momentum

BNP Paribas and HSBC have joined the Canton Foundation, a development organization focused on blockchain-based real-world asset (RWA) tokenization, signaling growing institutional interest in the application of distributed ledger technology in finance. The addition of these two global banks brings the foundation’s membership to over 30, with the Canton Network serving as a blockchain infrastructure designed specifically for institutional financial use cases. The Canton Network emphasizes RWA tokenization, regulatory compliance, and interoperability, positioning itself as a key platform for the next phase of blockchain adoption.

BNP Paribas’ head of global markets, Hubert de Lambilly, stated that the bank’s involvement reflects a strategic commitment to DLT in order to meet evolving client demands. BNP Paribas has previously supported Digital Asset, the firm behind the Canton Network, by participating in its $135 million funding round. This round, led by DRW Venture Capital and Tradeweb Markets, underscores institutional confidence in the long-term potential of a privacy-enabled public blockchain tailored for institutional finance. The funding is expected to accelerate adoption of decentralized finance initiatives on the Canton Network, with a focus on tokenizing private credit markets and Treasury bills.

Similarly, HSBC’s head of digital assets and currencies, John O’Neil, emphasized the importance of the move in fostering the maturation of the blockchain industry and creating real liquidity in digital asset markets. HSBC has previously been active in blockchain initiatives, including potential plans to apply for a stablecoin license in China Hong Kong under the city’s new regulatory framework. The bank is also exploring blockchain applications in custody, tokenization, and bond issuance.

The Canton Foundation, as the governing body of the Canton Network, is responsible for strategic direction and governance of the blockchain ecosystem. The network is designed to facilitate collaboration among financial institutions for the issuance and management of tokenized assets. With over 400 participants in its broader ecosystem, the Canton Network is increasingly being viewed as a foundational infrastructure for blockchain-based financial systems. The trend of institutional adoption is being supported by evolving regulatory frameworks, including U.S. legislation such as the stablecoin-focused GENIUS Act, which has helped build confidence in blockchain-based financial models.

Institutional engagement in RWA tokenization is reshaping the narrative for the crypto industry in 2025, with a focus on private credit markets, equities, and infrastructure assets. The World Economic Forum (WEF) has noted that the collaboration between institutions, regulators, and technology companies is a key driver for the maturation of asset tokenization. If successful, the WEF said, these efforts could fulfill the long-anticipated potential of blockchain in creating trusted, interoperable financial frameworks.