BBVA launches tokenized fund in Spain’s regulatory sandbox

BBVA has introduced a tokenized fund in Spain’s regulatory sandbox, a testing environment overseen by the Spanish securities regulator, CNMV.

This initiative marks BBVA’s exploration of Blockchain technology in asset management, with the pilot program limited to BBVA employees as a way to assess the potential benefits and operational impacts of a blockchain-based fund.

The fund, named BBVA Token Short-Term Fixed Income, will utilise a private blockchain developed by Allfunds, a provider of decentralised solutions.

BBVA Asset Management will manage and market the fund, using Allfunds’ network, smart contracts, and dedicated nodes for this experimental case.

Despite its blockchain foundation, the fund will operate similarly to traditional financial products, allowing users familiar with conventional fund management to interact with it seamlessly.

BBVA clarified that employee-only participation will enable a controlled study of the tokenized fund’s performance without exposing regular customers to potential risks associated with this new technology.

The initiative reflects a collaborative effort across various BBVA divisions, including teams focused on digital assets and blockchain technology.

"The project marks an important step towards adopting a technology with broad transformative potential in asset management, starting in a controlled and regulated environment that will allow BBVA AM to explore its benefits in a secure and scalable manner," Belen Blanco stated, CEO of BBVA Asset Management Europa.

In line with its blockchain initiatives, BBVA recently announced plans to launch a Euro-pegged stablecoin next year in partnership with Visa, further demonstrating the bank’s commitment to integrating decentralised finance technology into traditional financial services.