BNP Paribas Securities Services And Smartangels To Use Blockchain To Revolutionise Financing For Private Companies

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BNP Paribas Securities Services, a leading global custodian, and SmartAngels, A leading French direct investment platform, have taken a major step forward in crowdfunding history by signing a strategic partnership for the use of Blockchain technology.
BNP Paribas Securities Services and SmartAngels will allow private companies to issue securities on the primary market and give investors access to the secondary market using Blockchain technology. The pilot scheme is due to be launched in the second half of 2016, subject to regulatory approvals.

A unique partnership with big ambitions: a major step forward for crowdfunding and the management of private share ownership

Under the partnership, BNP Paribas Securities Services is developing a share register that uses the Blockchain protocol, which will automatically register financial securities issued by SmartAngels’ client companies.

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.

In a sector that is seeing sharp volume growth, SmartAngels’ clients will benefit on two levels. The solution will standardise the securities registration process, providing investors with additional IT and trade processing security. At the same time, the Blockchain platform operated by BNP Paribas will simplify the management of shareholders for issuers.

Philippe Ruault, Head of product for clearing, custody and settlement at BNP Paribas Securities Services, said:

“By applying Blockchain technology in the crowdfunding sector, we will accelerate cash and securities flows and make them more secure, using e-certificates. This is a major innovation for the custody and account-keeping of unlisted securities. It also provides BNP Paribas Securities Services with the opportunity to test a solution that could be applied to listed securities markets. The use of Blockchain is part of BNP Paribas’ digital strategy.”

Opening of the first secondary market for crowdfunding

The standardisation of transactions and the enhanced security provided by BNP Paribas Securities Services will also allow investors to trade their shares directly on the SmartAngels platform, creating a secondary market for companies registered with the platform. This will make crowdfunding investments much more liquid – an issue not given much attention in this sector until now.

The integration of Blockchain technology on the SmartAngels platform will accelerate the movement started by the crowdfunding pioneers several years ago, making it easier for start-ups and growth SMEs to access financing. It will reinforce SmartAngels’ lead in the equity crowdfunding market and confirms the advantages of its business model as a marketplace for direct investment. SmartAngels will further enhance the professionalism of the crowdfunding sector and will accelerate its transition to becoming an efficient capital market for private companies.

“At the moment, only a few thousand companies are listed on the financial markets in Europe. 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,” explained Benoit Bazzocchi – founder of SmartAngels.

About Richard Kastelein

Founder of industry publication Blockchain News, partner at ICO services collective CryptoAsset Design Group (helped raise over $200m+), director of education company Blockchain Partners (Oracle Partner) and ICO event organiser at leading industry event  CryptoFinancing (first ICO event in Europe) – Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He sits on the advisory boards of half a dozen Blockchain startups and has written over 1200 articles on Blockchain technology and startups at Blockchain News and has also published pioneering articles on ICOs in Harvard Business Review and Venturebeat.
 
Kastelein has spoken (keynotes & panels) on Blockchain technology in Amsterdam, Antwerp, Barcelona, Beijing, Brussels, Bucharest, Dubai, Eindhoven, Gdansk, Groningen, the Hague, Helsinki, London, Manchester, Minsk, Nairobi, Nanchang, San Mateo, Shanghai,Tel Aviv and Venice. His network is global and extensive.
 
He is a Canadian (Dutch/Irish/English/Métis) whose writing career has ranged from the Canadian Native Press (Arctic) to the Caribbean & Europe. He’s written occasionally for Harvard Business Review, Wired, Venturebeat, The Guardian and Virgin.com and his work and ideas have been translated into Dutch, Greek, Polish, German and French.
 
A journalist by trade, an entrepreneur and adventurer at heart, Kastelein’s professional career has ranged from political publishing to TV technology, boatbuilding to judging startups, skippering yachts to marketing and more as he’s travelled for nearly 30 years as a Canadian expatriate living around the world.
 
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, “The Hitchhiker’s Guide to the Seas’ travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, Netherlands where he’s raising three teenage daughters with his wife and sailing partner, Wieke Beenen.

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