BNP Paribas and HSBC have joined the Canton Network, a permissioned blockchain, signaling growing institutional adoption of blockchain technology in financial markets.

Executive Summary

BNP Paribas and HSBC have joined the Canton Network, a permissioned, privacy-centric blockchain designed for institutional finance. This move, following similar actions by Goldman Sachs and Moody's Ratings, underscores the increasing interest and adoption of blockchain technology by traditional financial institutions. The Canton Network facilitates the tokenization of real-world assets (RWA) and aims to connect global capital markets with privacy-preserving blockchain infrastructure.

The Event in Detail

On September 9, 2025, the Canton Foundation, the governing body of the Canton Network, announced the addition of BNP Paribas and HSBC to its membership. The network now comprises over 30 members. The Canton Network, developed by Digital Asset, focuses on RWA tokenization, regulatory compliance, and interoperability. Hubert de Lambilly, BNP Paribas' head of global markets, stated the move reflects the bank’s dedication to adopting distributed ledger technology. John O'Neil, HSBC's head of digital assets and currencies, said joining the foundation would contribute to the blockchain industry’s maturation and support the creation of real liquidity in digital asset markets.

Market Implications

The addition of BNP Paribas and HSBC, both global systemically important banks (G-SIBs), to the Canton Network signifies a growing acceptance of blockchain solutions within traditional finance. With the network already hosting over $6 trillion in tokenized real-world assets and processing over $4 trillion in monthly transaction volume, this development could lead to increased liquidity in digital asset markets and the emergence of new blockchain-based financial products. The Canton Network's focus on privacy, enabled by technologies like Zero-Knowledge Proofs (ZKPs), addresses a key concern for institutions, paving the way for confidential RWA tokenization and private lending.

Expert Commentary

Joining the foundation would help foster the blockchain industry's maturation and support the creation of real liquidity in digital asset markets.

  • John O'Neil, HSBC's Head of Digital Assets and Currencies

This move reflects the bank’s dedication to adopting distributed ledger technology “to serve our evolving client needs.”

  • Hubert de Lambilly, BNP Paribas' Head of Global Markets

Broader Context

BNP Paribas operates Neobonds, an asset tokenization platform, and participated in the Canton Network Pilot. HSBC is actively involved in various blockchain initiatives, including exploring blockchain applications in custody, tokenization, and bond issuance in Hong Kong. Both banks' involvement in the Canton Network aligns with the broader trend of institutional adoption of blockchain technology for financial applications, particularly in the realm of RWA tokenization. The network's ability to connect previously siloed financial systems while preserving privacy addresses a critical need for regulated institutions. The use of ZKPs is projected to drive substantial growth by enabling high transaction throughput and unlocking new opportunities across various industries, potentially rendering traditional passwords obsolete and improving regulatory compliance without data exposure.