Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE.
BNP Paribas (ENXTPA:BNP) has run a pilot issuing tokenized share classes of a French money market fund on the Ethereum public blockchain, testing how blockchain fits within tightly regulated fund structures.
See our latest analysis for BNP Paribas.
The tokenisation pilot comes as BNP Paribas shares trade at €94.73, with recent momentum reflected in a 7.5% 30 day share price return and a 34.5% 90 day share price return. The 1 year total shareholder return of 46.6% and 5 year total shareholder return of about 1.7x suggest investors who stayed invested over time have seen materially stronger outcomes than the shorter term moves alone imply.
If this kind of blockchain trial has you thinking more broadly about where technology meets finance, it could be worth scanning 17 cryptocurrency and blockchain stocks as a starting point for other ideas beyond BNP Paribas.
With BNP Paribas trading at €94.73, a reported intrinsic discount of about 53% and only a small gap to the average analyst price target, is the market missing something or already pricing in the bank’s future growth potential?
With BNP Paribas last closing at €94.73 against a narrative fair value of about €98.87, the current price sits slightly below what that widely followed view suggests, and the Ethereum tokenisation pilot adds another layer for investors considering potential future earnings power.
The integration of AXA IM and HSBC WM Germany, alongside ongoing expansion in high-growth markets (notably Turkey and Poland), is set to significantly broaden BNP Paribas’s distribution network and wealth management capabilities, directly increasing fee-based revenue and supporting long-term earnings growth through enhanced client acquisition and cross-selling opportunities.
Want to see what kind of revenue path sits behind that fair value? The narrative focuses on fee growth, margin improvement and a different future earnings mix. The exact assumptions may be unexpected.
Result: Fair Value of €98.87 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, those fee and margin expectations could be knocked off course if Eurozone commercial banking remains structurally low growth, or if digital-only competitors chip away at customer relationships.
If you think the story here appears finely balanced between promise and risk, take a moment now to review the numbers for yourself, including 4 key rewards and 4 important warning signs.
If this story has sharpened your appetite for what is possible with listed banks and blockchain, do not stop here when there are broader opportunities to consider.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include BNP.PA.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com