Executives from Franklin Templeton and BNP Paribas say tokenized assets and stablecoins could make capital use more efficient across Europe. Their comments come as Wall Street steps up efforts to put real-world assets on blockchain.
Why tokenization matters for capital efficiency
The two firms — one a giant in asset management, the other a top European bank — argue that turning traditional assets into digital tokens can free up capital that's currently tied up in slower settlement processes. Stablecoins, they note, could smooth cross-border payments and collateral management. The idea is that tokenization cuts out middlemen, reduces transaction times, and lets institutions move money faster. That's capital efficiency in plain terms: getting more out of each dollar or euro.
Franklin Templeton already runs a tokenized money-market fund in the U.S. BNP Paribas has been testing blockchain for bond issuance and repo trades. Their executives didn't offer specific numbers on how much capital could be unlocked, but the message is clear: Europe's old financial plumbing needs an upgrade.
Wall Street's growing tokenization push
The executives' statements land in a broader context of Wall Street exploring tokenization. Banks like JPMorgan, Goldman Sachs, and BlackRock have launched or tested tokenized products — from funds to bonds to gold. What's new is the sheer scale. Settlement cycles, which take days for some assets, could shrink to minutes. That's a direct improvement in capital efficiency because money isn't sitting idle.
Europe has lagged a bit behind, partly due to regulatory fragmentation. But the comment from a major U.S. asset manager and a French bank suggests that momentum is building there too. Stablecoins, often seen as crypto-adjacent, are now being pitched as tools for wholesale payments, not just retail trading.
The executives didn't call for specific rules. But their remarks imply that European regulators would need to catch up if the region wants to stay competitive. Tokenized assets don't fit neatly into existing securities or banking laws.
What comes next
Wall Street's tokenization experiments are still early-stage in terms of volume. But the endorsements from Franklin Templeton and BNP Paribas add weight to the argument that this isn't a niche — it's a shift in how capital markets could function. For now, the industry watches to see whether Europe's regulators will act, or if the private sector will simply forge ahead with pilot programs.
