HSBC and BNP Paribas Fuel Canton Network’s Institutional Tokenization Revolution

Wall Street's old guard just placed their biggest bet yet on blockchain's institutional future.

Banking Giants Back Tokenization Push

HSBC and BNP Paribas—two titans managing over $3 trillion combined—throw weight behind Canton Network's ambitious plan to tokenize traditional assets. This isn't crypto speculation; it's institutional infrastructure building at scale.

The Protocol Gaining Institutional Trust

Canton's privacy-focused architecture finally convinces risk-averse institutions that blockchain can handle sensitive financial data. The network enables settlement finality without exposing transaction details to competitors—something TradFi actually cares about.

Tokenization's Trillion-Dollar Promise

Real-world assets from bonds to private equity represent the next frontier for blockchain adoption. Tokenization could unlock liquidity for traditionally illiquid assets—assuming regulators don't strangle it in crib.

When banks that once dismissed crypto now build its infrastructure, even the skeptics notice. The revolution won't be decentralized—just profitable.

TLDR

• HSBC and BNP Paribas join Canton Foundation, adding to four G-SIBs on the network.
• Canton Network supports $3.6 trillion in tokenized assets across member institutions.
• BNP Paribas issued the EU’s first sovereign digital bond for Slovenia using Canton tech.
• HSBC issued a €50M digital bond for Luxembourg on its Orion platform.

HSBC and BNP Paribas have officially joined the Canton Foundation, the governance body behind the Canton Network. Their entry supports the growing MOVE by global banks toward blockchain-based financial infrastructure. With their inclusion, the number of foundation members reaches 30. The Canton Network now includes four global systemically important banks (G-SIBs), enhancing the role of blockchain in regulated markets.

Growing Bank Participation in the Canton Network

BNP Paribas and HSBC become the latest major banks to join the Canton Foundation. They join BNY Mellon and Goldman Sachs as part of the foundation’s G-SIB members. The move is part of a broader trend where large financial institutions are building connections through shared blockchain infrastructure.

Each of these banks already runs its own enterprise blockchain platforms using Canton technology. However, these platforms have operated in silos. By participating in the Canton Foundation, the banks now help govern a shared framework for secure, interconnected digital financial services. The Canton Network uses permissioned validators and supports interoperability between networks, which allows digital assets to move more easily across systems.

According to the foundation, the Canton Network supports over $3.6 trillion in tokenized assets. It enables settlement and trading of digital assets between members while maintaining privacy. This model offers a different approach than public blockchains, where data exposure and compliance remain key challenges for institutions.

Use Cases in Bond Issuance and Digital Settlement

Both BNP Paribas and HSBC have issued digital bonds using Canton-based systems. BNP Paribas arranged the European Union’s first sovereign digital bond for Slovenia in 2023. The €30 million bond was quickly redeemed as part of an EU settlement trial. HSBC also continues to issue government bonds, including a €50 million six-month note for the Luxembourg State Treasury. Earlier, it issued over $750 million in bonds for the Hong Kong government.

The ability to connect these private systems through the Canton Network may open new use cases. For instance, banks could use tokenized assets as collateral or trade them across linked platforms. By joining the Canton Foundation, both banks may help shape these shared use cases while improving liquidity and efficiency.

“Joining the Canton Network fits into our strategy to support clients through digital innovation,” BNP Paribas said in a statement. HSBC added that the collaboration WOULD help enable secure, multi-asset transactions and increase access to liquidity in digital markets.

Canton Foundation Expands Blockchain Governance

The Canton Foundation has grown steadily since its launch. Members include banks, technology firms, and financial infrastructure providers. Recent additions also include Moody’s Ratings, Hong Kong FMI Services, and Tradeweb. Tradeweb operates one of the world’s largest bond trading platforms, which could offer new venues for tokenized bonds issued by HSBC and BNP Paribas.

The foundation is supported by Digital Asset, the firm behind Canton’s Core technology. Its governance model allows members to shape the network’s development while ensuring regulatory alignment. By bringing together firms under neutral management, the foundation aims to build digital financial infrastructure that works across borders and platforms.

With HSBC and BNP Paribas now on board, the foundation gains wider input from institutions already active in tokenized finance. The move supports a more coordinated approach to digital asset markets across banking, trading, and settlement.