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.
- Commodities Behemoth Testing Blockchain Tech with Crude Oil Cargo - January 21, 2017
- Berlin’s Neufund Blockchain Fundraising Platform Raises $2 Million - January 21, 2017
- Alibaba’s Ant Financial Aims for 2 billion Users by Bringing Blockchain Technology to Alipay - January 20, 2017
- ChronoBank Plans to Use Multiple Blockchains - January 20, 2017
- Hyperledger Welcomes New Blockchain Platform Partner Cello - January 20, 2017
- WISeKey and Stratumn Join Forces to Use Blockchain for Real-Time Accountability and Traceability in Enterprise Processes - January 20, 2017
- Blockchain Report – European Union Agency for Network and Information Security (ENISA) - January 20, 2017
- FINRA Seeks Comment on New Report on the Potential Implications of Blockchain - January 18, 2017
- Finlync Designs ERP Integration to Distributed Ledger and Blockchain - January 18, 2017
- European Central Bank Considering Digital Currency – Cryptocash - January 18, 2017
- US Homeland Security Testing Blockchain To Track People, Goods Across Borders - January 17, 2017
- Israeli Tax Authorities Might Go After Bitcoin - January 16, 2017
- Senior US Regulator David Blaszkowsky Joins Canadian Blockchain Intelligence Group (BIG) Advisory Board - January 16, 2017
- Seven European Banks Cut Blockchain Deal to Facilitate Easier Cross-Border SME Commerce - January 16, 2017
- Marketforce to Host 2nd Annual The Blockchain Summit on 28th March 2017 in London - January 15, 2017
- Waves Platform Implements New Blockchain Scalability Approaches - January 14, 2017
- China’s Puerbank Group Launches Global Node for A Standardized Blockchain-Based Digital Currency in the UK - January 14, 2017
- DU and Guardtime Partner with Dubai’s NMC Hospital to Revolutionize Electronic Health Records with Blockchain Technology - January 14, 2017
- Report: Blockchain Slated to Become $8 Billion Global Industry By 2024 - January 14, 2017
- Blockchain Could Save Financial Services $110 billion over Next Three Years - January 14, 2017
- Russia Embraces Bitcoin – No Plans to Ban Cryptocurrencies - January 14, 2017
- Canadian BTL Group Completes Blockchain Pilot With Major Global Energy Company - January 12, 2017
- Tokio Marine & Nichido Fire Insurance and NTT DATA Cut Blockchain PoC For Insurance - January 12, 2017
- HfS Research Recognises VirtusaPolaris for Emerging Blockchain Services in BFSI - January 12, 2017
- Deloitte Launches Blockchain Lab in New York - January 12, 2017
- SWIFT launches Blockchain Proof of Concept In Hyperledger - January 12, 2017
- Blockchain VIP’s to Gather for Major Retreat This Month - January 12, 2017
- IBM Watson Health and US FDA Announce Blockchain Healthcare Data Project - January 12, 2017
- Equibit Development Corporation Sets $7 million Funding Target, Crowdsale Date - January 12, 2017
- US National Science Foundation Offers $8.5m in Funding for Blockchain Proposals for Cyberinfrastructure Security - January 11, 2017
- China Poised to Dominate Fintech and Blockchain Markets in 2017 - January 10, 2017
- Respectonomy Social Network To Tackle Censorship Using Blockchain - January 10, 2017
- South Korea Plans to Launch a Full-Scale Pilot Project on Blockchain-powered Financial Services - January 10, 2017
- Postal Savings Bank of China (PSBC) Announces First Blockchain Financial Service - January 10, 2017
- Reserve Bank of India (RBI) Releases Bullish Report on Blockchain for Clearing, Settlement - January 10, 2017
- Blockchain TV – TED Talk | How the Blockchain will Radically Transform the Economy | Bettina Warburg - January 10, 2017
- Alfa-Bank and S7 Airlines Close Blockchain Deal in Russia - January 10, 2017
- Life.SREDA and the Russian Republic of Tatarstan To Introduce Blockchain Technology For Public Administration System - January 10, 2017
- Union Square Ventures Leads $4M Funding Round for Blockchain Startup Blockstack - January 10, 2017
- US Department of Energy Eyeing Blockchain Solutions for Security – Seeking Proposals - January 10, 2017
- India’s Axis Bank to Use Ripple Blockchain for Cross-Border Remittances - January 10, 2017
- Georgia to Store Real Estate Documents in Blockchain System with Bitfury Group and Hernando de Soto - January 10, 2017
- US Depository Trust & Clearing Corporation Selects IBM, AXONI and R3 to Develop Derivatives Processing On Blockchain - January 10, 2017
- Grantcoin Foundation Expands Board of Directors – Distribution Rescheduled to Late January - January 8, 2017
- UNICEF, UK Home Office and BTCC to speak at London Blockchain Week 2017 - January 6, 2017
- American Company The Seam to Form Cotton Blockchain Consortium with IBM on Hyperledger Fabric - January 5, 2017
- Move over Bitcoin – MIT Cryptographer Silvio Micali and his Public Ledger ALGORAND… The Future of Blockchain? - January 5, 2017
- Blockchain to Play Role in Future of Transportation? UBS Teams up with ZF and innology SE to Make it Happen - January 5, 2017
- Blockchain Group Hyperledger Expands into China - January 5, 2017
- The Evolution Of Casinos – Next Generation Transparent Ethereum Smart Contracts Based Casino “Edgeless” - January 5, 2017