When one of the biggest asset managers in Europe makes a move, the finance world pays attention. So when Amundi, with more than two trillion euros in assets under management, rolled out its first tokenized share class on Ethereum, the announcement sent an immediate ripple across the investment and blockchain landscape. The timing, the scale, and the clarity of the approach all point to something bigger than a simple product update. This represents a genuine step in the shift from traditional financial infrastructure to blockchain based rails.
To understand why this rollout is gaining momentum so quickly, it helps to look at how Amundi is building a bridge between real world assets and public blockchains. It also matters to see how this move fits into Europe’s broader attempt to guide tokenization within regulated frameworks.
Before diving deeper, you can check Amundi’s own background information on its digital asset strategy here:
https://www.amundi.com/globaldistributor/About-us/Innovation
A Turning Point for Tokenized Fund Shares
Although several financial institutions have run tokenization pilots in the last few years, Amundi has taken a step that stands out because it involves live, investable assets. The newly launched share class is tied to a euro denominated cash fund, and investors access their units through Ethereum tokens. Essentially, the fund operates with traditional regulation and oversight, yet the ownership representation is recorded through tokenized shares.
For a sense of context, tokenization refers to the process of placing financial instruments or asset rights on blockchain networks. You can find an accessible explainer here:
https://www.ft.com/content/5c95cd3f-3b8e-46de-8650-a852e4cc8cd7
Because Amundi’s tokenized shares sit directly on Ethereum, the system allows transparent on chain verification of ownership, near instant settlement when allowed within the regulatory framework, and more streamlined investor servicing. As a result, this could reduce administrative overhead and improve operational speed.
Why Amundi Chose Ethereum
Even though several blockchains position themselves as institutional ready, Amundi selected Ethereum for reasons that feel both practical and strategic. First, Ethereum’s network has strong existing support for security tokens, smart contract standards, and institutional custody providers. Second, Europe has shown increasing comfort with regulated tokenization projects built on public chains, particularly for traditional financial instruments.
Additionally, Ethereum’s ability to integrate with permissioned layers or compliant token frameworks allows asset managers to satisfy regulatory obligations while still using a widely trusted blockchain. This kind of hybrid design is described by the European Blockchain Observatory:
https://www.eublockchainforum.eu
Because of this, Amundi can operate within Europe’s evolving regulations and still tap into a network that already supports billions in daily transaction volume.
Tokenization Meets the Cash Management Market
Cash funds may not sound high profile, yet they are essential in corporate treasury, asset allocation, and liquidity management. They are also one of the most infrastructure heavy segments of asset management because they deal with constant subscriptions and redemptions. This is where tokenization can make a meaningful difference.
Through tokenized shares, investors gain easier access to a fund that historically required several intermediaries. Instead of relying on legacy settlement cycles, Ethereum based tokens allow faster updates to share registries and smoother transfers between qualified holders.
For an academic perspective on tokenized fund mechanics, you can explore this research paper:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4547845
The Broader Real World Asset Movement
Amundi’s timing aligns closely with the rise of real world assets, commonly known as RWAs, across public blockchains. RWAs include bonds, funds, real estate, treasury instruments, and more. The sector has grown rapidly throughout 2024 and 2025 thanks to advances in digital identity, compliance layers, and institutional custody services.
Although many RWA platforms operate in the crypto native space, traditional giants entering the arena bring a different kind of credibility. For example, BlackRock’s tokenized BUIDL fund, also built using Ethereum infrastructure, showed large investor demand for blockchain enabled fund access. That trend placed increasing pressure on European asset managers to explore similar pathways.
Coverage on institutional RWA adoption can be found here:
https://www.reuters.com/technology/finance
Because Amundi is one of Europe’s largest players, its decision helps set the tone for how traditional finance may evolve over the next decade.
Regulatory Comfort is Improving in Europe
Europe is creating one of the clearest frameworks for tokenization. From the Pilot Regime for DLT Market Infrastructures to upcoming adjustments for fund distribution rules, regulators are gradually shaping pathways that let institutions safely adopt blockchain systems.
Amundi structured its tokenized share class to comply fully with European fund rules. It did not attempt to sidestep existing regulations. Instead, it aligned with them while improving technology behind the scenes. That balance demonstrates a model other European asset managers may follow.
For regulatory references, you can learn more about the European Pilot Regime here:
https://finance.ec.europa.eu/regulation-and-supervision
Because clarity is expanding, institutions no longer need to treat tokenization as an experiment. They can introduce full scale products with well defined guardrails.
How Amundi’s Tokenized Shares Work in Practice
Although the technical details vary by provider, the basic concept is simple. Investors subscribe to the tokenized share class through authorized channels. Their ownership is represented by a token on Ethereum. The actual fund assets remain in traditional custodial structures, but the share register is updated through smart contracts.
Investors hold their tokens in qualified digital wallets controlled by regulated custodians. Transfers between eligible participants occur on chain but remain restricted based on compliance rules. This system allows blockchain benefits while satisfying legal requirements.
To understand how institutional wallet providers support these setups, you can check Fireblocks:
https://www.fireblocks.com
Because everything is encoded in smart contracts, processes such as corporate actions, NAV updates, and share issuance can eventually become more automated than in legacy systems.
A Step Forward for Investor Accessibility
Although tokenized shares do not necessarily lower the professional investor thresholds or local compliance rules, they do simplify operational workflows. Settlements become cleaner. Audits become more transparent. Transfer processes become faster. Ultimately, tokenization makes it easier for asset managers to serve investors across borders, provided they adhere to regulatory constraints.
Many analysts believe this could eventually lead to fractionalization, expanded distribution channels, and simplified liquidity management. Whether that happens soon depends on regulatory comfort, but Amundi has clearly opened the door.
Research on how tokenization improves liquidity and transferability can be found here:
https://www.bis.org/publ/qtrpdf/r_qt2306g.htm
How This Redefines the Future of Asset Management Technology
Although tokenized assets have existed for years, most early examples focused on experimentation. Amundi’s launch, however, is a signal of operational readiness. Institutions with trillions under management do not deploy new infrastructure lightly. Because of that, the fund industry may soon undergo a meaningful shift where blockchain becomes the underlying settlement layer for all types of instruments.
As traditional fund administrators adapt to these changes, they may begin integrating blockchain based transfer agents, digital identity systems, and automated compliance checks. This could turn Ethereum and other blockchains into foundational technologies for fund servicing.
To explore the connection between asset administration and blockchain, see this summary from Deloitte:
https://www2.deloitte.com/global/en/pages/financial-services/articles
Over time, investors may find that blockchain powered fund units offer better transparency, improved reporting, and more responsive execution, especially in cross border contexts.
Amundi Joins a Growing List of Institutional Movers
Amundi is not alone in this transition. Several banking groups, asset managers, and central banks are testing various forms of tokenized instruments. The difference is that Amundi’s launch is available now and has already begun real distribution.
For instance:
BNP Paribas, HSBC, and JPMorgan have issued tokenized versions of money market funds or fixed income products for internal workflows.
Franklin Templeton runs a tokenized US treasury fund on public blockchain rails.
BlackRock has scaled its tokenized fund to billions.
You can explore Franklin Templeton’s publicly available tokenized fund explanation here:
https://www.franklintempleton.com/investor/products
Because Amundi carries significant weight in Europe, its move may encourage more regional players to follow, which will accelerate standardization.
Real Benefits for Fund Managers and Investors
Although tokenization still has challenges, the benefits are increasingly difficult to ignore. These include:
Faster processing times
Blockchain based transfers settle more quickly than traditional systems.
Improved transparency
Investors can verify transactions and ownership without waiting on intermediaries.
Lower operational costs over time
Smart contracts automate tasks that currently require large administrative teams.
Interoperability with future financial networks
Tokenized assets can connect to digital identity layers, stablecoin infrastructures, and next generation payments.
Better auditability
Immutable ledgers reduce reconciliation errors and simplify oversight.
Detailed analysis of tokenization efficiencies is available here:
https://www.mckinsey.com/industries/financial-services
Because of these advantages, Amundi’s move suggests that tokenization will gradually become less of an experimental niche and more of a mainstream operational standard.
Cons That Still Need to Be Addressed
Even though the announcement is impressive, it is important to be realistic about the remaining challenges. For instance:
Regulatory frameworks are still evolving
Europe is ahead of many regions, yet global harmonization is still developing.
Custody and wallet infrastructure must remain secure
Institutional grade storage is improving but remains under heavy scrutiny.
Education for investors and distributors is still necessary
Traditional market participants need time to adapt to new workflows.
Interoperability across blockchains and legacy systems is not fully solved
Although Ethereum is widely supported, institutional architecture spans multiple layers.
For a view on tokenization risks, see this analysis by the IMF:
https://www.imf.org/en/Blogs
Still, despite these hurdles, the momentum is clearly in favor of deeper blockchain integration.
A Defining Moment for Europe’s Digital Finance Landscape
Because Europe has spent years shaping its digital finance regulations, it is now benefiting from clarity. Amundi’s launch showcases the success of a region that has chosen to encourage progress through regulation instead of banning innovation. This approach is positioning Europe as a global center for tokenized finance.
In fact, several European regulators openly encourage experimentation within controlled frameworks. More examples and case studies can be found here:
https://www.esma.europa.eu
Because of this ecosystem, Amundi’s announcement does not feel like a one off milestone. Instead, it signals a broader wave of institutional adoption.
Final Reflections
Amundi’s tokenized share class on Ethereum is more than a technical update. It is a pivotal shift that blends traditional European finance with the most widely used public blockchain in the world. Although tokenization remains in its early stages, major players are treating it as the next logical step in the evolution of asset management.
Because Amundi acts as a bellwether for the broader European market, its decision could spark new innovations, more fund launches, and greater comfort with public blockchain rails. The coming years may reshape how investors engage with funds, how portfolios are administered, and how financial infrastructure operates behind the scenes.
Regardless of the exact timelines, this launch marks an important moment. Traditional finance has begun to merge with blockchain in ways that impact real products, real investors, and real capital flows. The transformation is no longer theoretical. It is here.
Sources:
- Amundi Digital Strategy
https://www.amundi.com/globaldistributor/About-us/Innovation - Financial Times Tokenization Overview
https://www.ft.com/content/5c95cd3f-3b8e-46de-8650-a852e4cc8cd7 - European Blockchain Observatory
https://www.eublockchainforum.eu - Reuters Financial Technology Coverage
https://www.reuters.com/technology/finance - European Regulation References
https://finance.ec.europa.eu/regulation-and-supervision - Fireblocks Institutional Wallets
https://www.fireblocks.com - Bank for International Settlements
https://www.bis.org/publ/qtrpdf/r_qt2306g.htm - Deloitte Blockchain Research
https://www2.deloitte.com/global/en/pages/financial-services/articles - Franklin Templeton Tokenized Funds
https://www.franklintempleton.com/investor/products - McKinsey Tokenization Efficiency
https://www.mckinsey.com/industries/financial-services - IMF Digital Asset Commentary
https://www.imf.org/en/Blogs - ESMA Digital Finance
https://www.esma.europa.eu
