Sandro Pierri, chief executive of BNP Paribas Asset Management, has categorically dismissed the idea of getting into cryptocurrencies, according to a report by London-based business outlet Financial News.
Pierri claims that the French fund management group, which controlled roughly 537 billion euros as of December 2021, does not have any plans for crypto.
With that being said, BNP Paribas Asset Management is keen on blockchain technology. Pierri believes that it could be used for improving liquidity with the help of tokenization. This is the "clear focus" for the investment arm of BNP Paribas.
The previous cryptocurrency bull market was partially driven by strong institutional demand.
However, BNP Paribas Asset Management, whose clients are mostly institutions, claims that it is seeing very little demand for the novel asset class.
In July, Coindesk reported that BNP Paribas was looking to enter the crypto custody space. The French banking behemoth, which boasts roughly $13 trillion worth of assets under management, reportedly formed a partnership with Switzerland-based Metaco.
Societe Generale, another French multinational investment bank, recently launched new services for asset managers who want to add digital assets to their portfolios. The banking giant cited increasing customer demand as the reason behind the move.
As reported by U.Today, Societe Generale described Bitcoin's price performance as "erratic," adding that gold is a better stabilizer compared to its digital competitor.