BNP Paribas in blockchain deal with crowdfunding firm
BNP Paribas has signed a deal to develop a blockchain share register with Paris-based crowdfunding platform SmartAngels.
The plan is to use distributed ledger technology, known as blockchain, to automatically list securities issued by firms using SmartAngels’ platform.
A pilot scheme is due to be launched in the second half of 2016, subject to regulatory approvals.
Investor payments will be processed immediately and e-certificates will be issued to them straight away.
Financial transactions made via the platform will be performed "simply, quickly, securely and for a lower cost", a statement added.
“By applying blockchain in the crowdfunding sector, we will accelerate cash and securities flows and make them more secure, using e-certificates,” said Philippe Ruault, head of product for clearing, custody and settlement at BNP Paribas Securities Services.
“This is a major innovation for the custody and account-keeping of unlisted securities.”
A secondary market for crowdfunding
Investors will also be able to trade their shares directly on the SmartAngels platform, creating a secondary market for companies registered with the platform.
BNP Paribas reckons this will make crowdfunding investments much more liquid and make it easier for start-ups and boost SME access to finance.
“At the moment, only a few thousand companies are listed on the financial markets in Europe,” said d Benoit Bazzocchi, founder of SmartAngels.
“The integration of Blockchain on crowdfunding platforms will give hundreds of thousands of start-ups and growth SMEs fast access to low-cost financing from individual and professional investors.”
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