BNP Paribas Securities Services – a subsidiary of BNP Paribas Group has informed about a new partnership on Tuesday, which will enable firms to issue securities with the help of the blockchain technology.
According to the report, the asset division of BNP Paribas (BNP Paribas Securities Services), works together with investment platform SmartAngels on a pilot, which is said to be launched in the second half of 2016 due to pending regulatory approval.
As the official statement informs, the financial institution sees the effort as a “major step” in advancing crowdfunding. The project will see BNP Paribas developing and managing a registry for shares in private companies using the blockchain that in turn will automatically register securities issued by SmartAngels.
Smart Angels are designed as a secondary market for shares registered on the BNP platform, a move the partners said would make it easier for startups and small businesses to access financing.
As the released document says:
“Investor payments will be processed immediately and e-certificates will be issued to them straight away. Financial transactions made via the platform will therefore be performed simply, quickly, securely and for a lower cost.”
Head of product for clearing at BNP – Philippe Ruault – emphasized his belief that the program should make trading in the private securities market faster.
“This is a major innovation for the custody and account-keeping of unlisted securities,” Ruault added.
The project is not the first onefrom the top financial institution when seeking to leverage the blockchain technology as a way to make aspects of the private securities process easier. The effort notably follows Nasdaq Linq, what is a pilot designed to allow entrepreneurs with the ability to issue and manage private shares through a private blockchain system.
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