BANKS BLOCKCHAIN RACE: BNP PARIBAS SENDS ITS FIRST PAYMENTS FROM GERMANY, UK, NETHERLANDS

Last updated: June 19, 2025, 20:44 | Written by: Tyler Winklevoss

The banks blockchain race is heating up, and BNP Paribas is making significant strides.In a landmark move, the French multinational bank has successfully executed its first live cross-border B2B payments using blockchain technology. The first Blockchain Bizhackathon organised by BNP Paribas on Transaction Banking activities has just ended. Initiated by the Corporate Trade and Treasury Solutions team, the aim was to assess real-world potential blockchain technology applications for use in both trade finance and cash managementThis isn't just a technological novelty; it's a strategic play that could reshape the landscape of international finance.Acting on behalf of corporate clients like Panini Group and Amcor, BNP Paribas processed and cleared payments in various currencies between its bank accounts located in Germany, the Netherlands, and the United Kingdom. BNP Paribas successfully utilized blockchain technology to process and clear payments in various currencies between BNP Paribas bank accounts located in Germany, the Netherlands and the United Kingdom for Panini Group and Amcor, the French multinational bank said.This achievement signifies a tangible step towards streamlining global transactions, reducing costs, and increasing efficiency for businesses operating across borders.Imagine a world where international payments are as seamless as sending an email – that's the potential of blockchain in banking.But how did BNP Paribas achieve this, and what does it mean for the future of finance? French bank BNP Paribas has joined a U.S.-based blockchain-powered network overseen by JPMorgan to use digital tokens for short-term trading in fixed income markets, stepping into the $12 trillionLet's delve into the details of this game-changing development and explore the broader implications of blockchain adoption in the banking sector. Over the past 200 years, BNP Paribas has established a deep-rooted presence in the Netherlands, while we also work closely with our network of experts in 64 countries. Thanks to our international network and regional history, we add local relevance to our knowledge of international markets and enable your plans to transcend borders.The successful implementation highlights the increasing importance of blockchain technology as banks explore innovative solutions to modernize payment systems and enhance their service offerings. Based on the promising Blockchain technology, the aim of these various projects is to optimise the Trade Finance and Cash Management activities of BNP Paribas Group clients. BNP Paribas has initiated a Group-wide drive to digitise all its activities, and has been investigating Blockchain technology since 2025.The era of real-time, secure, and transparent cross-border payments may be closer than we think.

BNP Paribas Pioneers Blockchain Payments: A Deep Dive

BNP Paribas' recent announcement marks a pivotal moment in the evolution of blockchain technology within the financial services industry. Bank-to-bank Blockchain payment firsts keep coming with news that France s BNP Paribas successfully sent multiple transactions this week. Acting on behalf of Italian client Panini GroupThe successful processing of real-time payments for Amcor and Panini Group underscores the tangible benefits that blockchain can offer to corporate clients.These benefits extend beyond mere speed; they encompass cost reduction, enhanced security, and increased transparency.

Key Highlights of the Blockchain Implementation

Real-time Payments: Transactions are processed and settled in near real-time, significantly reducing settlement times compared to traditional methods.
Cross-border Functionality: The system facilitates seamless payments between different countries, eliminating the complexities and delays associated with correspondent banking.
Multi-currency Support: Payments are processed in various currencies, catering to the diverse needs of multinational corporations.
Reduced Costs: By eliminating intermediaries and automating processes, blockchain technology can significantly lower transaction costs.
Enhanced Security: Blockchain's inherent security features, such as cryptography and immutability, provide a higher level of protection against fraud and cyber threats.

The choice of Amcor and Panini Group as the first corporate clients to utilize this blockchain system is strategic. (Clockwise from top left) Marc Espagnon, Head of Payment and Cash Management at BNP Paribas, Kelvin Li, GM of Platform Technology at Ant International, Douglas Feagin, President of Ant International and Pierre Fersztand, Global Head of Cash Management, Payments, Trade Solutions Factoring at BNP at the MOU signing ceremony on 3 July (Photo: Business Wire)Both companies are global leaders with complex cross-border payment needs, making them ideal candidates to showcase the capabilities of the technology. BNP Paribas has just completed its first cross-border corporate payments transactions via blockchain technology, the bank announced Wednesday (Dec. 21). across Germany, the Netherlands and theThe success of these initial transactions demonstrates the scalability and reliability of BNP Paribas' blockchain infrastructure.

The Driving Forces Behind Blockchain Adoption in Banking

The blockchain race among banks isn't just about keeping up with the latest technology; it's driven by a confluence of factors that are reshaping the financial landscape. BNP Paribas today announced it has processed several live payments for two of its longstanding corporate clients, Amcor, global leader in packaging solutions and Panini Group, international leader inThese include:

Demand for Faster and Cheaper Payments: Businesses are increasingly demanding faster and more cost-effective payment solutions to support their global operations.
Increased Competition: Fintech companies are disrupting traditional banking models by offering innovative payment solutions based on blockchain and other emerging technologies.
Regulatory Pressure: Regulators are encouraging banks to explore blockchain and other technologies to improve efficiency and transparency in the financial system.
Cost Reduction Imperatives: Banks are constantly seeking ways to reduce operational costs and improve profitability, and blockchain offers a significant opportunity in this area.
Enhanced Security Needs: With the rise of cybercrime, banks are looking for more secure payment systems to protect their customers and their own assets.

BNP Paribas' initiative to integrate blockchain into its payment infrastructure is a direct response to these driving forces. Discover the latest group news (results, innovations, banking ) - The bank for a changing world - BNP ParibasBy embracing this technology, the bank aims to enhance its competitiveness, improve customer satisfaction, and meet the evolving demands of the global marketplace.

How Blockchain is Transforming Cross-Border Payments

Traditional cross-border payments are often plagued by inefficiencies, delays, and high costs. Using Blockchain technology, BNP Paribas successfully processed and cleared for Panini Group and Amcor payments in various currencies between BNP Paribas bank accounts located in Germany, the Netherlands and the United Kingdom.These challenges stem from the reliance on intermediaries, such as correspondent banks, and the complexities of navigating different regulatory environments. BNP Paribas: Blockchain for Green Bonds. BNP Paribas has introduced a blockchain-based platform to manage green bonds. By leveraging blockchain, the bank ensures transparency in how funds are allocated to environmentally sustainable projects. This innovation aligns with BNP Paribas s commitment to supporting green initiatives and improvingBlockchain technology offers a radical alternative by:

Eliminating Intermediaries: Blockchain enables direct peer-to-peer transactions, bypassing the need for correspondent banks and other intermediaries.
Automating Processes: Smart contracts can automate various aspects of the payment process, such as currency conversion and compliance checks.
Providing Real-time Visibility: Blockchain provides a transparent and auditable record of all transactions, allowing parties to track the status of payments in real-time.
Reducing Settlement Times: Blockchain can significantly reduce settlement times, from days or even weeks to just minutes or seconds.
Lowering Transaction Costs: By eliminating intermediaries and automating processes, blockchain can dramatically lower transaction costs.

For companies like Amcor and Panini Group, these benefits translate into significant cost savings, improved cash flow management, and enhanced operational efficiency.The ability to process payments in real-time, across borders, and in multiple currencies gives them a competitive edge in the global marketplace.

BNP Paribas' Blockchain Strategy: Beyond Payments

While the initial focus of BNP Paribas' blockchain implementation is on cross-border payments, the bank's long-term strategy extends far beyond this application. BNP Paribas has announced the first payments have gone live on its blockchain transaction-processing and settlement system, designed to cut costs of transactions for businesses.BNP Paribas is exploring the use of blockchain in a wide range of other areas, including:

Trade Finance: Blockchain can streamline trade finance processes, such as letter of credit issuance and supply chain financing.
Securities Trading: Blockchain can facilitate the issuance, trading, and settlement of securities, reducing costs and improving efficiency.
Digital Identity: Blockchain can provide a secure and decentralized platform for managing digital identities, simplifying KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance.
Green Bonds: As demonstrated, BNP Paribas has introduced a blockchain-based platform to manage green bonds, ensuring transparency in how funds are allocated to environmentally sustainable projects.
Internal Treasury Operations: BNP Paribas ALM Treasury and EY successfully completed a pilot demonstrating the feasibility of using blockchain to optimize the bank's global internal treasury operations.

These initiatives demonstrate BNP Paribas' commitment to becoming a leader in blockchain innovation within the financial services industry.By exploring a wide range of use cases, the bank aims to unlock the full potential of this transformative technology and create new value for its clients.

The Future of Blockchain in Banking: What to Expect

The banks blockchain race is far from over, and the coming years are likely to witness further advancements and adoption of this technology.Some key trends to watch include:

Increased Collaboration: Banks are increasingly collaborating with each other and with technology providers to develop and implement blockchain solutions.
Regulatory Clarity: Regulators are working to provide clearer guidance on the use of blockchain in the financial system, which will help to foster innovation and adoption.
Interoperability: Efforts are underway to improve the interoperability of different blockchain networks, enabling seamless transactions across different platforms.
Central Bank Digital Currencies (CBDCs): Central banks around the world are exploring the possibility of issuing their own digital currencies, which could have a profound impact on the financial system. BNP Paribas co-d veloppe actuellement avec ses clients plusieurs projets, r sultats du travail collaboratif initi en d but d ann e durant le premier Bizhackathon Blockchain de BNP Paribas sur les activit s de Transaction Banking. Ces projets utilisent la technologie prometteuse blockchainBNP Paribas, through its investment in Fnality International, is actively involved in developing blockchain-based payment systems to enable real-time wholesale payments in central bank digital currency.
Growth of Decentralized Finance (DeFi): Decentralized finance (DeFi) platforms are leveraging blockchain technology to offer a wide range of financial services, such as lending, borrowing, and trading, without the need for traditional intermediaries.

The adoption of blockchain in banking is not without its challenges.These include scalability issues, regulatory uncertainty, and the need for greater standardization.However, the potential benefits of this technology are so significant that it is likely to play an increasingly important role in the future of finance.

Addressing Common Questions About Blockchain in Banking

As blockchain technology gains traction in the banking sector, several questions frequently arise.Here are some answers to address these common concerns:

What are the main benefits of using blockchain for payments?

Blockchain offers faster transaction times, reduced costs, enhanced security, and increased transparency compared to traditional payment systems.It also enables direct peer-to-peer transactions, eliminating the need for intermediaries.

Is blockchain secure for financial transactions?

Yes, blockchain's inherent security features, such as cryptography and immutability, provide a high level of protection against fraud and cyber threats. BNP Paribas has completed its first live cross-border B2B payments between corporate clients using blockchain technology.However, it's crucial to implement robust security measures at all layers of the blockchain infrastructure.

How does blockchain reduce transaction costs?

Blockchain reduces transaction costs by eliminating intermediaries, automating processes, and streamlining settlement procedures.This can lead to significant cost savings for businesses, especially those involved in cross-border transactions.

What are the regulatory challenges associated with blockchain in banking?

Regulatory challenges include uncertainty surrounding the legal status of cryptocurrencies, concerns about money laundering and terrorist financing, and the need for greater consumer protection. BNP Paribas, one of the world s top banks, announced that it has processed real-time payments for two of its longstanding corporate clients, Amcor, a global leader in packaging solutions, and Panini Group, an international leader in collectables and trading cards using blockchain technology.Regulators are working to address these challenges and provide clearer guidance on the use of blockchain in the financial system.

How will blockchain impact traditional banking jobs?

While blockchain may automate some tasks currently performed by bank employees, it is also likely to create new job opportunities in areas such as blockchain development, cybersecurity, and compliance. Soon, a group of 10 multinational corporates, and 12 banks, including BNP Paribas, will begin testing an enhanced multi-bank standard to further improve the cross-border payments experience for multi-banked corporates. This enhanced standard will allow treasurers to initiate and track gpi payments to and from multiple banks.Banks will need to invest in training and upskilling their workforce to prepare for the changing landscape.

The Competitive Landscape: Who Else is in the Banks Blockchain Race?

BNP Paribas is not alone in exploring and implementing blockchain technology.Several other major banks are also actively involved in the banks blockchain race, including:

JPMorgan Chase: JPMorgan has developed its own blockchain platform called Quorum and is using it for various applications, including interbank payments and securities trading. BNP PARIBAS ALM Treasury and EY today announced they successfully completed a pilot demonstrating the feasibility of using blockchain to optimize the global internal treasury operations of the bank. The ALM Treasury department, which manages the bank s internal treasury, at the service of allBNP Paribas has also joined a U.S.-based blockchain-powered network overseen by JPMorgan.
Goldman Sachs: Goldman Sachs is investing in blockchain startups and exploring the use of blockchain for securities trading and other financial services.
Citigroup: Citigroup is experimenting with blockchain for cross-border payments and other applications.
Standard Chartered: Standard Chartered is using blockchain to streamline trade finance processes and improve supply chain transparency.
Banco Santander: Banco Santander is using blockchain to facilitate cross-border payments and other financial services.

The competition among these banks is driving innovation and accelerating the adoption of blockchain technology in the financial services industry.As more banks embrace blockchain, the benefits for businesses and consumers will continue to grow.

Conclusion: BNP Paribas' Blockchain Leap and the Future of Banking

BNP Paribas' successful implementation of blockchain for cross-border payments is a significant milestone in the banks blockchain race.This initiative demonstrates the tangible benefits that blockchain can offer to corporate clients, including faster transaction times, reduced costs, and enhanced security. BNP Paribas announced on Wednesday it completed its first real-time cross-border payment via the distributed ledger.While challenges remain, the potential of blockchain to transform the financial system is undeniable.BNP Paribas' commitment to exploring and implementing this technology positions the bank as a leader in innovation and a key player in the future of banking.

Key Takeaways:

BNP Paribas has successfully processed its first live cross-border B2B payments using blockchain technology.
This initiative offers tangible benefits to corporate clients, including faster transaction times, reduced costs, and enhanced security.
The banks blockchain race is intensifying, with several major banks actively exploring and implementing this technology.
Blockchain has the potential to transform the financial system by streamlining processes, reducing costs, and increasing transparency.

The future of banking is likely to be shaped by blockchain and other emerging technologies.Banks that embrace these technologies and adapt to the changing landscape will be best positioned to thrive in the years to come.What steps will your organization take to prepare for the blockchain revolution?