Financial Institutions Embrace Tokenization for Capital Markets Modernization

Large financial institutions are turning to tokenization to improve capital efficiency and liquidity, according to representatives from Franklin Templeton and BNP Paribas.

Speaking at a panel at the WAIB Summit 2026 in Monaco, industry executives discussed how tokenized assets and stablecoins could modernize Europe's capital markets by streamlining settlement, improving collateral mobility and creating new opportunities for cross-border financial activity.

Tokenization offers institutions more “optionality and flexibility,” a development that is driving interest from banks and large corporations to launch their own offerings, said Rafael Mastroberardino, head of digital assets partnership development at investment manager Franklin Templeton.

Julien Clausse, the head of BNP Paribas CIB's tokenization platform, said blockchain's ability to host multiple assets on the same chain could unlock new institutional use cases, provided those assets are able to interact with one another.

Institutional interest in tokenization has accelerated in recent months. Some of the largest US banks, including JPMorgan Chase and Bank of America, are reportedly planning a tokenized deposit network for launch in the first half of 2027, seeking to keep deposits within regulated banking channels while offering some of the speed and programmability associated with blockchain-based assets.

Executives discuss stablecoins and tokenized assets during a panel at WAIB Summit 2026 in Monaco. Photo: Cointelegraph

Wall Street pushes deeper into tokenization

On March 18, the US Securities and Exchange Commission approved Nasdaq's pilot proposal to support the trading of tokenized versions of high-volume stocks and securities.

Days later, on March 24, the New York Stock Exchange partnered with tokenization platform Securitize to develop blockchain-based trading infrastructure for Wall Street, including tokenized shares of stocks and exchange-traded funds.

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The initiative forms part of parent company Intercontinental Exchange's plans for a tokenized securities venue featuring 24/7 trading, instant settlement, stablecoin-based funding and onchain settlement.

The sector has also attracted significant investment. On Thursday, Digital Asset Holdings raised $355 million in a round led by Andreessen Horowitz's crypto arm. The deal reportedly valued the company at around $2 billion. The capital will be used to expand Canton Network, a platform designed for financial institutions to tokenize and settle traditional securities while keeping sensitive data private.

Canton has already been piloted by institutions including Goldman Sachs, BNY Mellon, BNP Paribas, Standard Chartered, Société Générale and Deutsche Börse.