Paris-headquartered banking giant BNP Paribas has announced that it is expanding its blockchain platform for private stocks to help non-exchange-listed companies issue minibonds via crowdfunding platforms.
The move follows the French government’s initiative to allow private companies to issue minibonds via crowdfunding platforms, which is also encouraging crowdfunding companies to consider using blockchain technology, rather than existing individual ledgers, to ensure the authentication of transactions. BNP Paribas Securities Services aims to have the new platform ready by the end of this year and launch it as the final law on minibonds is passed in France.
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The bank is working in partnership with crowdfunding specialists Lendosphere, Enerfip and Lumo on this initiative. As part of the partnership, BNP Paribas is working on a distributed ledger that will register all minibonds issued via the platform and record all related transactions and changes of ownership. Issuers and investors will benefit from a standardised process, which will ensure financial transactions are performed quickly, efficiently and securely.
Marc Younes, head of business management at BNP Paribas Securities Services’ Innovation & Digital Lab, said: “We are delighted to be working on this exciting new initiative, which answers the French government’s call to make use of distributed ledgers to support the sale of minibonds via crowdfunding platforms. “Blockchain technology is particularly suited to the fundraising needs of private companies as transactions volumes are typically lower than for listed companies. This technology could also serve to standardise processes around the trade lifecycle of minibonds.”
Amaury Blais, chairman at Lendosphere, commented: “As a top three crowdlending player in France, we are keen to explore how new technologies can help grow our industry. We are delighted to be associated with BNP Paribas Securities Services’ innovative project and participate in setting efficient and standardised processes, which will ultimately help private companies’ fundraising efforts.”